UK Government Scraps Plan to Cut Tax Rate for Highest Earners After Market Turmoil

Prime Minister Liz Truss reads a statement outside 10 Downing Street, London, following the announcement of the death of Queen Elizabeth II on Sept. 8, 2022. Ian West/PA Media

The UK’s new prime minister Liz Truss on Monday made a dramatic u-turn on plans to cut taxes for the highest earners following backlash over the decision that prompted major market turmoil

Chancellor of the Exchequer Kwasi Kwarteng announced the scrapping of the plan on Twitter early Monday and said it was clear that reducing the 45 percent rate of income tax on high earners had become a “distraction.”