Prime Minister Liz Truss dropped a plan to cut taxes for the U.K.’s highest earners just 10 days after announcing it, a humiliating reversal designed to fend off a mounting rebellion within her own Conservative Party.
Chancellor of the Exchequer Kwasi Kwarteng announced the decision in a tweet early Monday, saying “we get it, and we have listened.” He said the decision to scrap the 45% rate of income tax had become a “distraction.”
The pound jumped as much as 1% before giving up some of those gains, trading 0.5% higher against the dollar at 9:30 a.m. in London.
