BIRMINGHAM, England — The British government on Monday dropped plans to cut income tax for top earners, part of a package of unfunded cuts unveiled only days ago thatIn a dramatic about-face, Treasury chief Kwasi Kwarteng abandoned plans to scrap the top 45% rate of income tax paid on earnings above 150,000 pounds a year.have spent the last 10 days defending the cut in the face of market mayhem and increasing alarm among the governing Conservative Party.
The U-turn came after a growing number of Conservative lawmakers, including former ministers with broad influence,“I can’t support the 45p tax removal when nurses are struggling to pay their bills,” Tory lawmaker Maria Caulfield said. She also said the decision to abolish the top tax rate had been taken by Kwarteng alone. On Monday, Truss' spokesman said the prime minister still had confidence in her embattled Treasury chief.
Monday’s change of direction lifts some of the political pressure on the government from inside the Conservative Party, but it still faces skepticism from markets and economists and mounting public opposition to the worsening cost-of-living squeeze.