MPs pressure Kwarteng for more ‘big changes’ after tax U-turn
Penny Mordaunt pays tribute to Queen at Tory Party conference
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Pressure is mounting on Chancellor Kwasi Kwarteng from within his own party to make more “big changes” after a major U-turn on his plan to scrap the 45p tax rate. The tax U-turn was announced on Monday morning ahead of the Chancellor’s speech at the Conservative Party Conference this afternoon. Mr Kwarteng said “we get it, and we have listened” as he confirmed he was ditching the policy less than two weeks after it was announced. Mel Stride, the chairman of the powerful Treasury Select Committee which scrutinises the government’s financial plans, said: “A reversal of the abolition of the 45p rate is a positive step.
“Not just because of the issue of fairness but because it shows much-needed pragmatism by a government that has so far felt far too rigid and doctrinaire.
“The further big change needed now is to bring forward the OBR forecast so that the markets can be further reassured at the earliest opportunity.
“This would take some pressure off interest rate rises.”
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‘We have listened’: Chancellor announces tax cut U-turn
Chancellor Kwasi Kwarteng has announced a U-turn on cutting the top rate of income tax.
Mr Kwarteng said in a statement: “From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy.
“However, it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.
“As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.
“We get it, and we have listened.
“This will allow us to focus on delivering the major parts of our growth package.”
Good morning, I’m Tara Fair, I’ll be bringing you all the latest developments on the Conservative Party Conference. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.
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