After fierce criticism of its economic plans, the British government has made a huge turnaround. Finance Minister Kwasi Kwarteng announced Monday morning that he will not scrap the highest tax rate of 45 percent for top earners. “We understood, we listened,” the Conservative politician wrote in a statement posted on Twitter.
Previously, prominent members of the Tory party, such as ex-ministers Michael Gove and Grant Shapps, had strongly criticized the tax breaks and massive national debt and expressed their intention to vote against in parliament. The government feared an uprising within its own party.
Attempt to stimulate the economy
Just over a week ago, Kwarteng announced the tax cuts, which are primarily intended to benefit the wealthiest in society. Prime Minister Liz Truss’ new government wanted to boost economic growth. After the announcement of the debt-funded plans, the pound plummeted. The British central bank felt compelled to intervene and buy up government bonds with long maturities – without a ceiling.
Kwarteng wants to stick with other equally controversial parts of the economic plan, including tax cuts for other income groups – despite the wildly high inflation.
Source: Krone
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.
