UK government scraps 45% top rate tax cut

LONDON

The British government has scrapped a proposed top rate tax cut of 45%, the country's finance minister announced Monday.

The decision to announce a major U-turn from the tax cut for high earners came after a week of economic turmoil in the country and the UK pounding diving to a historic low against the US dollar.

Kwasi Kwarteng wrote on Twitter that the cut had "become a distraction."

“We get it and we have listened,” he added.

Kwarteng’s announcement followed criticism from Tory MPs in the party’s autumn conference that continues in Birmingham.

Also taking to Twitter, Prime Minister Liz Truss echoed Kwarteng: "We get it and we have listened.

"The abolition of the 45pc rate had become a distraction from our mission to get Britain moving. Our focus now is on building a high growth economy that funds world-class public services, boosts wages, and creates opportunities across the country."

The new government under Truss revealed the new financial policy for “economic growth” of the country and introduced a 45% tax cut for those who earn more than £150,000 ($167,000) 10 days ago.

The policy had met strong opposition from all sides, including the Conservative MPs since it was revealed.

The government has defended the policy, saying it would promote growth.