Voters have been left unimpressed by the Chancellor after he announced that the government would not ‘proceed’ with a cut in the top rate of income tax.
Kwasi Kwarteng confirmed that plans to cut the income tax rate from 45 percent to 40 percent for those earning more than £150,000 have been scrapped this morning. Less than 24 hours ago, his boss, PM Liz Truss, defended the policy in a television interview.
After mounting pressure caused by economic turmoil, ministers have backed down. However, voters remain unconvinced about the Chancellor, it appears.
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When asked if rumours were true that the 45p rate was going on BBC Breakfast this morning (October 3), the Chancellor said: “Absolutely. What was clear, talking to a lot of people up and down the country, was that the 45p was becoming a huge distraction from what was a very strong plan.
“We have got an energy intervention which is preventing bills going up to £6,500 per year. We have reversed the national insurance increase to save the average person £330 per year. We have also brought forward the basic rate [of income tax] cut of 1p.”
Mr Kwarteng also released a statement on Twitter explaining his decision, which used the phrase ‘we get it, and we have listened’. That has prompted ridicule from some on social media, while others have pointed out that the first announcement of the tax cut has cost the country £65 billion through a Bank of England bail-out to shore up pension funds.
“What an absolute s***show,” Sarah Murphy said on Twitter. “Idiotic idea. Followed by market carnage, stubborn defiance and now a U-turn.
“Truss isn’t strong and bold. She’s arrogant and dangerous. And completely incapable of rational, principled governance. The 45p tax-cut-U-turn farce sums her up perfectly.”
Matthew Payne was also left dismayed with the episode. He said: “Kwasi Kwarteng says we've listened. F***ing hell it only cost £65 billion.”
User Matey Hopkins believed it showed the Chancellor’s true colours. He added: “We get where your priorities are. Not the 95 percent.” Another user, L177177, had a more simple message: “Taxi for Kwasi!”
However, some were glad to see the decision made. Lee Hood said: “Finally Liz Truss seems to have done a U-turn and seen sense and is going to ditch the 45p rate of tax for high earners. It’s a shame it’s taken this long for the “we get it” message.”
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