Liz Truss has confidence in Kwasi Kwarteng despite 45p tax rate U-turn
Liz Truss is standing by Chancellor Kwasi Kwarteng after they abandoned their plan to abolish the top rate of income tax for the highest earners in an astonishing U-turn.
Downing Street said the Prime Minister continues to have confidence in Mr Kwarteng, despite the humiliating move to avert a Tory rebellion over their widely criticised strategy.
The Chancellor acknowledged that their desire to borrow billions to axe the 45% rate on earnings over £150,000 had become a “terrible distraction” amid widespread criticism and threats of a rebellion.
Hours before he had been due to tell the Conservative Party conference they must “stay the course” on the plans, he issued a statement saying: “We are not proceeding with the abolition of the 45p tax rate.”
“We get it, and we have listened,” he added, in language echoed in a tweet from the Prime Minister less than 24 hours after she said she remained absolutely committed to the cut.
The U-turn will be seen as a massive blow to their authority, coming a little over a week after the tax cut was announced in the mini-budget and just a month into Ms Truss’s premiership.
Mr Kwarteng said he had “not at all” considered resigning despite scrapping a key part of the financial plans he set out on September 23.
Asked if Ms Truss has confidence in her Chancellor, the Prime Minister’s official spokesman told reporters: “Yes.”
Published: by Radio NewsHub