Kwasi Kwarteng makes humiliating U-turn over 45p tax rate cut for higher earners
Metro USOct 03, 2022
After proposing a cut to the highest tax bracket in its mini-budget on Sept. 23, the UK government reportedly reversed its plan on Monday in response to backlash.
The announcement of the plan, which would've reduced the top bracket from 45% to 40% as part of a "growth plan" to be funded by vast government borrowing, led to the value of the pound plummeting and was met with opposition from several senior lawmakers.
Liz Truss's mini-budget was a failed proposal from the outset, and her attempt to throw chancellor Kwarteng under the bus shows how ill-prepared she was to push this profoundly concerning policy. Though choosing not to cut taxes on the rich is a good thing, there's no doubt she would have pushed ahead if it weren't for the backlash she received from members of her own Conservative Party.
The problem wasn't the mini-budget itself, but the way PM Truss and her team communicated it to the public. The multiple tax breaks - which weren't just for the rich - were an attempt to generate economic growth, and it needed time to play out and see how the market reacted. If Truss had communicated her goals more clearly, she may have received the support she needed and her plan could've worked.