The British Prime Minister Liz Truss has dropped a plan to cut taxes for the highest earners, giving the ailing pound a much-needed rest. The move takes place just 10 days after the Plan has been announcedin the wake of a rebellion by MPs in her own Conservative Party.
“From supporting UK businesses to lowering the tax burden on the low paid, our growth plan represents a new approach to building a more prosperous economy. However, it is clear that the elimination of the 45p tax rate has become a distraction from our larger mission to address the challenges facing our country. It is for this reason that I am announcing that we are not moving forward with the abolition of the 45p tax rate. We understand and we have listened,” said the Chancellor of the Exchequer. Kwasi Kwarteng, said in his tweet.
We understand and we have listened. pic.twitter.com/lOfwHTUo76
— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022
Kwarteng said the move will allow the government to focus on delivering the key pieces of its growth package.
price action: The GBP/USD pair rose as high as 1.1264 on the day. The currency was last traded 0.29% higher against the dollar. That Invesco CurrencyShares British Pound Sterling Trust FXB is up over 3% in the last five days.
Continue reading: Explained: Why The British Pound Hit Record Lows Against The Dollar
