UK government to bring forward next financial statement

The UK government has backflipped on plans to scrap the 45 per cent rate of income tax for higher earners.

Chancellor Kwasi Kwarteng says the proposals, which were announced just 10 days ago, had become “a massive distraction on what was a strong package”.

Kwateng says his party has talked and listened to people and he gets the frustration.

The decision comes after several Tory MPs criticised the plan and marks a dramatic comedown for Prime Minister Liz Truss.

Critics believe the proposal to cut the income tax rate would have sent the wrong signal at a time when many UK workers are struggling financially.

But Kwaterang says this element of the proposal was “drowning out a strong package”, filled with support for energy bills, and cuts to the basic rate of income tax and corporation tax.

He says his government is committed wholly to economic growth.

Kwasi Kwarteng is set to bring forward his next financial statement from 23 November.

The medium-term financial plan will happen this month but an exact date has not yet been confirmed.