Chancellor Kwasi Kwarteng scraps 45p tax rate ahead of Tory conference

CHANCELLOR Kwasi Kwarteng has announced the controversial 45p tax rate will be scrapped before his Conservative Party Conference Talk later today.

The Chancellor published a statement before her appearance on Twitter BBC breakfast on Monday morning.

Mr Kwarteng confirmed the tax cut for people earning more than £150,000 came just 10 days after it was announced in mini budget.

The about-face comes after several Tory MPs expressed their opposition to the plan as the Tory party conference moves on.

Former Cabinet Ministers Michael Gove and Grant Shapps criticized the income tax cut for people earning more than £150,000 at a time as millions of people struggle with the rising cost of living.

In his statement on Twitter, Mr Kwarteng said: “From supporting UK businesses to lowering the tax burden on the least paid, our growth plan lays out a new approach to building a more prosperous economy.

“However, it is clear that the abolition of the 45p tax rate has become a distraction from our overarching mission of tackling our country’s challenges.

“As such, I am announcing that I am not moving forward with the abolition of the 45p tax rate.

“We understood and we listened.

“This allows us to focus on delivering the essential parts of our growth package.”

The Federal Chancellor continued in his statement: “Firstly, our energy price guarantee, which will help households and companies with their energy bills.

“Second, tax cuts to put money in the pockets of 30 million hard-working people and grow our economy.

“Third, press ahead with supply-side reforms – including accelerating major infrastructure projects – to get the UK moving.”

Chancellor Kwasi Kwarteng scraps 45p tax rate ahead of conference speechPA

Prime Minister Liz Truss has also been criticized for singled out Mr Kwarteng as responsible for the tax cut.

Speaking to the BBC’s Laura Kuenssberg on Sunday, Ms Truss said: “It was a decision by the Chancellor” and not one debated by the whole cabinet.

CONTINUE READING: Liz Truss ‘throws Kwasi Kwarteng under a bus’ over controversial tax cut

CONTINUE READING: Cost of living: Which kitchen appliances use the most electricity?

What is the tax cut?

The new tax cut would remove the 45% tax rate on income over £150,000.

This has drawn a negative reaction since its announcement as the country faces a cost of living crisis.

Some Conservative MPs, including high-profile former ministers, have also expressed anger at the cut.

The tax cut was announced as part of the Chancellor’s mini-budget and was due to come into effect in April 2023.

When is Chancellor Kwasi Kwarteng’s speech at the Tory conference?

Following Monday morning’s statement, Chancellor Kwasi Kwarteng will address the Conservative Party Conference in Birmingham today.

The speech will be followed with suspense across the country following the U-turn announced earlier in the day.

He is expected to give the speech around 4 p.m. shortly before the market closes.

Mr Kwarteng was to say that the Conservative Party must “stay the course” and support his plan for tax cuts in the face of a mounting Tory revolt.

However, The Sun newspaper had previously reported that Prime Minister Liz Truss was preparing to abandon the plans following talks with Mr Kwarteng following the backlash.

The Chancellor is expected to explain the government’s growth plan and energy price guarantee, further tax cuts and supply-side reforms. Chancellor Kwasi Kwarteng scraps 45p tax rate ahead of Tory conference

Fry Electronics Team

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