UK to Reverse Cut to 45% Tax Rate

Photo: Reuters

The Facts

  • 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.

The Spin

Left narrative

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.

Right narrative

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.

Articles on this story

Sign up to our daily newsletter