Government abandons plan to scrap 45p top rate of income tax

The government has abandoned its plan to abolish the 45% top rate of income tax due to the negative reaction it has received.

03 Oct 2022

The government has abandoned its plan to abolish the 45% top rate of income tax due to the negative reaction it has received.

Chancellor Kwasi Kwarteng first announced the policy in the Mini Budget on 23 September.

He has now confirmed that it will not go ahead in a statement on the social media platform Twitter.

In a tweet, Mr Kwarteng said: 'From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy.

'However, it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.

'As a result, I'm announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.

'This will allow us to focus on delivering the major parts of our growth package.'

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