Kwasi Kwarteng announces U-turn on 45p tax cut as Tory rebellion grows

Kwasi Kwarteng has backtracked on the government's proposed abolishment of the 45p tax rate amid widespread criticism inside and outside the Conservative Party.

Branding his mini-budget policy a "huge distraction" from an otherwise "strong package," the chancellor announced on Monday, 3 October, that the government would no longer be going ahead with scrapping the rate for the highest earners.

Tory insiders such as Grant Shapps criticised the policy, while Labour shadow chancellor Rachel Reeves said that the Conservatives had "destroyed their economic credibility."

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