Mr Kwarteng has confirmed the U-turn in a TV interview in the last few minutes
Kwasi Kwarteng has confirmed that the government will NOT scrap the top rate of income tax in a major U-turn for the new Chancellor.
However, that budget has led to economic turmoil for the country in the days since. There has been a run on the pound, and reports suggest that more than four in ten mortgage rates have been suspended by lenders , after a rise in interest rates.There has also been a warning from the International Monetary Fund , saying it ‘does not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy’.
When asked if rumours were true that the 45p rate was going on BBC Breakfast this morning , 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.