UK PM Liz Truss U-turns on tax cut for wealthiest to avert rebellion within own party
India TV NewsThe new Liz Truss-led UK government on Monday made an embarrassing U-turn on its central plank of tax cuts by withdrawing a controversial policy to abolish the topmost income tax slab for the wealthiest, following market turmoil and to avert a feared rebellion within the governing Conservative Party. Chancellor Kwasi Kwarteng declared that the announcement in his mini-budget of a proposed abolition of the 45 pence tax rate, which applied to the top tier of income taxpayers from next April, had become a “massive distraction” to an otherwise sound growth plan for the economy. Truss, who replaced Boris Johnson as prime minister after a hard-fought leadership battle with British Indian former Chancellor Rishi Sunak last month, soon referenced her Chancellor's tweet to add: "The abolition of the 45pc rate had become a huge distraction from our mission to get Britain moving. It is seen as a major blow to Truss pitching herself on the lines of former Tory Prime Minister Margaret Thatcher, who famously said the “lady’s not for turning” with reference to staying the course on unpopular policy decisions at a Conservative Party conference 42 years ago.