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UK government U-turns on proposed tax cut for high earners
2 years ago
11
LIZ TRUSS
UK
PRIME MINISTER
FINANCIAL MARKETS
UNITED KINGDON
BORIS JOHNSON
UK GOVERNMENT
CRISIS
FINANCIAL CRISIS
The UK government has U-turned on its plan to scrap the highest rate of income tax. It was forced to backtrack amid a rebellion within the party and turmoil in financial markets. Prime Minister Liz Truss' new cabinet announced a slew of tax cut plans just weeks after taking power, but the plan triggered a crisis of confidence in the government and a rout in the global markets. It dragged the pound to lows not seen since the 1980s, forcing the Bank of England to start a temporary purchase programme to calm markets.
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