British pound rises on reports that the UK government will

British pound rises on reports that the UK government will reverse cuts in the top tax rate

British Chancellor Kwasi Kwarteng outside 10 Downing Street. The UK will cap electricity and gas costs for businesses.

Rob Pinney | News from Getty Images | Getty Images

The cuts were poorly received by financial markets, and abolishing the 45 per cent tax paid on incomes over £150,000 ($166,770) was also seen as politically toxic as Britons cope with a cost-of-living crisis.

With the ruling Conservative Party plummeting in opinion polls since the announcement, in a rare move also drawn criticism from the International Monetary Fund, several of its own politicians have spoken out against the proposals.

Grant Shapps, the former transport secretary, said in a BBC interview on Monday morning that reversing the top-rate tax cut was a “reasonable response” because a tax cut for “the people who need it least… is kind of irritating to people.” which was unsustainable.”

It marks a major and humiliating about-face for new Prime Minister Liz Truss, who as late as Sunday insisted she was “absolutely committed” to the cut.

She also announced that the decision had been made by Kwarteng and had not been communicated to her entire cabinet. The plan would have given the country’s 660,000 top earners an average annual gain of £10,000, the Treasury had said.

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