“We get it and we have listened,” said Prime Minister Liz Truss, reversing a policy that sent the pound plummeting alongside the government’s polling numbers.
LONDON — British Prime Minister Liz Truss on Monday ditched her signature plan to cut taxes for the country’s top earners after it triggered market turmoil and a huge domestic outcry.
Truss, who is less than a month into the job, proposed removing the top tier of income tax — meaning a saving for people who earn more than 150,000 pounds ($168,000) — as part of a set of unfunded economic reforms that caused the pound to fall to historic lows and damaged Britain’s economic standing globally.
The dramatic reversal comes just hours after Truss defiantly defended the tax cut and her broader right-wing economic agenda to ruling Conservative Party activists, saying it was necessary to solve the country’s long-term economic woes. Faced with a growing political rebellion after days of economic chaos, the government said early Monday it was abandoning the plan.
“We get it and we have listened,” Truss and her embattled finance minister Kwasi Kwarteng said on Twitter.
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Article URL : https://www.nbcnews.com/news/world/uk-pm-liz-truss-scraps-tax-cut-rich-market-chaos-pound-crashing-rcna50407