Liz Truss today appeared to hint she could bring back her tax cut for the rich in future - despite ditching it in a Budget U-turn.
The Prime Minister said “I would like to see” the 45p top rate of Income Tax to be “lower” - and refused to rule out trying to bring back the issue in future.
It comes a day after she U-turned and axed her plan to cut the 45p rate on earnings over £150k down to 40p.
The tax cut would have cost the Treasury £2bn a year, handing £10k a year each on average to 660,000 of the highest earners.
Asked if it was still a good idea, just unpopular, she told BBC Political Editor Chris Mason: “I would like to see the higher rate lower. I want us to be a competitive country.
“But I have listened to feedback. I want to take people with me. Yes, we are going to have to make tough decisions. Yes, we're going into a tough winter.
“Yes, times are difficult. But fundamentally, you know, if people are concerned about something which was a distraction from the major policies, which I've outlined, Chris, like the energy price guarantee, like keeping taxes low, like getting the economy moving, I felt it was wrong to allow that distraction to continue from the major parts of our package because that is not a reflection of what my priorities are.”
Told she seemed to be hinting she might want to bring back a cut to the top rate of tax in future, she replied she was not thinking about it “now”.
She said: “I'm not contemplating that now.
“I’m very, very clear. We have listened to people. We have listened to people about what their priorities are.”
Ms Truss said there was "absolutely no shame" in a leader "listening to people".
She told Sky News: "What I did is I took the decision very rapidly on the 45p rate that it was becoming a distraction from the core policies we were delivering.
"Core policies on the energy price guarantee, on keeping taxes low during the economic slow down, those were the priorities. Frankly the 45p wasn't a priority policy and I listened to people.
"I think there's absolutely no shame (Beth) in a leader listening to people and responding and that's the kind of person I am and I've been totally honest and upfront with people that everything I have done as Prime Minister is focused on helping people get through what is a very difficult winter and very difficult circumstances and putting our country on a stronger footing for the future."
