UK Economy Secretary Kwasi Kwarteng has announced the withdrawal of the measure, which has sparked a rebellion among the Conservative ranks themselves, shaken the stock market and plunged the pound.
Euskaraz irakurri: Gobernu britainiarrak atzera egin du eta aberatsenei zergak jaisteari muzin egin dio
the minister British Economics, Kwasi Kwartengannounced Monday that the Liz Truss government will refrain from lowering the top tax bracket from 45% to 40% (the one that applies to the highest income earners), a decision that had itself sparked an uprising in the conservative ranks.
“It is clear that the abolition of the rate of 45% had become” a distraction in our primary mission to address the challenges of our country. As a result, we will not proceed with its abolition. We understand and we have listened,” the minister said in a statement.
The tax plan presented by Kwarteng on September 23 had convulsions in the markets in the face of doubts about London’s ability to absorb the sovereign debt generated by the tax cut.
The austerity plan was the most aggressive presented in half a century, eventually leading to the risk premium of Britain’s debt until it approached Italy’s and forced the Bank of England to announce an impending rate hike.
Among other things, the plan provides for the abolition of the maximum rate of 45% (a decision for which Truss held Kwarteng responsible), the reduction of the basic rate from 20% to 19%, the abolition of the corporate tax increase by the previous cabinet and the annulment of the current limit on bonuses received by bankers.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
