Britain skips tax cut for rich: Humiliated Truss reverses

The British government’s “growth plan”, led by Liz Truss, had already wreaked havoc on markets, leading to the Conservative party’s collapse in the polls. According to the latest YouGov poll, the opposition Labor Party had an unprecedented 33 point gap a few days ago. 54% of respondents would have voted for Labor and only 21% would have voted for the Conservatives. After days of the pound sterling falling, government bonds under pressure and rising interest rates, 86% of respondents said the government had lost control of the economy.

So today, after defending her fiscal plan – which exploded like a market bomb – the Conservative Party’s internal upheaval pushed the British prime minister into a humiliating setback until the announcement that the proposed withdrawal of the tax rate will be cancelled. 45% for income over £150,000.

“We understand and listen,” Prime Minister Truss wrote on Twitter, echoing the words of Treasury Minister Kwasi Kwarteng, who announced the sensational turnaround in the measure. According to Truss, the move “has become a distraction from our mission to get Britain moving”. “Our goal now is to build a high-growth economy that finances world-class public services, raises wages and creates opportunities across the country,” he explained.