UK's Truss makes U-turn on tax after week of market turmoil

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BIRMINGHAM, England (Reuters) - British Prime Minister Liz Truss was forced on Monday into a humiliating U-turn after less than a month in power, reversing a cut to the highest rate of income tax that helped spark turmoil in financial markets and a rebellion in her party.

Finance minister Kwasi Kwarteng said the decision to scrap the top rate tax cut had been taken with"some humility and contrition."

While the removal of the top rate of tax only made up around 2 billion out of the 45 billion pounds of unfunded tax cuts, it was the most divisive element of a package that drew the wrath of markets by failing to set out how it would be paid for. Kwarteng said he had not considered resigning. He said he had decided to reverse course in conjunction with the prime minister.

She had argued that the government needed a radical plan to rescue the economy and make the country more dynamic, and that she was willing to take unpopular decisions to make it happen.

 

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She loved to backpedal, that's being translated she's unfit for the job plus her subordinates...

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