1664787641 In the UK Liz Truss abandons her controversial tax reform

In the UK, Liz Truss abandons her controversial tax reform The

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Britain's Chancellor of the Exchequer Kwasi Kwarteng (L) and Britain's Prime Minister Liz Truss (R) attend the opening day of the annual Conservative Party conference in Birmingham, central England October 2, 2022. - Britain's new prime minister will have plenty of critics lurking at what the Tories are calling Europe's biggest annual political event. (Photo by Oli SCARFF / AFP) OLI SCARFF / AFP Britain’s Chancellor of the Exchequer Kwasi Kwarteng (L) and Britain’s Prime Minister Liz Truss (R) attend the opening day of the annual Conservative Party conference in Birmingham, central England October 2, 2022. – Britain’s new prime minister is set to face a slew of critics in what the Tories are calling Europe’s biggest annual political event. (Photo by Oli SCARFF / AFP)

OLI SCARF / AFP

Chancellor of the Exchequer Kwasi Kwarteng and British Prime Minister Liz Truss on October 2, 2022 (Photo by Oli SCARFF / AFP)

UNITED KINGDOM – London on Monday October 3 announced it would reverse the income tax cut for the wealthiest announced ten days ago that sent financial markets into turmoil.

“It is clear that the elimination of the 45% tax rate has overshadowed our mission to address the difficulties in our country. Therefore I announce that we will not prosecute them,” Finance Minister Kwasi Kwarteng tweeted, adding, “We understand, we have listened.”

“This allows us to focus on executing the key elements of our growth plan. Firstly, the upper limit for energy prices,” explained the minister. This measure is valued at £60 billion over just six months, while for households it is set to last two years.

Liz Truss, who arrived at Downing Street in early September, and her Chancellor of the Exchequer, Kwasi Kwarteng, announced a massive household energy supply plan on September 23, accompanied by huge tax cuts.

Particularly controversial was the cut in income tax for the upper class, which would have fallen from 45% to 40%, as it is accused of favoring the wealthiest amid the UK’s cost of living crisis.

Further tax cuts were also announced, including the elimination of increases in corporate income tax or social security contributions, and the suspension of environmental taxes.

The plan as a whole, estimated by economists at between £100 billion and £200 billion, but whose funding and economic impact have not been fully quantified, had caused confusion in financial markets.

The pound fell to an all-time low and UK government lending rates rose to their highest levels since the 2009 crisis, threatening the country’s financial stability.

The Bank of England acted urgently last week to stabilize interest rates, threatening pension fund bankruptcy.

Asked on the BBC about his possible resignation, the Chancellor of the Exchequer firmly rejected the possibility.

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