The annual Global Impact Conference 2022 brings together visionary business leaders to revolutionize educational systems and inspire collaborative actionRead more APO Group announces content partnership with Pan-African broadcaster VoxAfricaRead more MainOne, an Equinix Company’s MDXi Appolonia Achieves Tier III Constructed Facility certification (TCCF), Now Most Certified Data Center in GhanaRead more United Nations High Commissioner for Refugees (UNHCR) warns rising tide of hunger, insecurity, and underfunding worsening gender-based violence risksRead more The Royal Thai Embassy presents the cultures of Thailand at the Association of Southeast Asian Nations (ASEAN) Festival in KenyaRead more Climate change is the biggest global threat, young people in Africa and Europe tell European Investment Bank (EIB), Debating Africa and Debating EuropeRead more $2 million in prizes awarded at Conference of the Parties (COP27) to African youth-led businessesRead more Africa and Europe’s top business and public sector leaders gather to chart Africa’s economic rebirthRead more The Thai delegation’s active participation at the 145th Assembly of the Inter-Parliamentary Union (IPU) in KigaliRead more Canon shares winning image of its Redline Challenge competition 2022Read more

‘What a day’: UK treasury chief confirms U-turn on tax cuts for the rich

show caption
LONDON, UNITED KINGDOM – In this illustration photo coins of the pound sterling are seen in London, United Kingdom on September 21, 2022. ( Raşid Necati Aslım - Anadolu Agency )
Print Friendly and PDF

Oct 04, 2022 - 12:47 AM

LONDON (AA) – The British Treasury chief on Monday confirmed his U-turn on tax cuts for the rich, telling a Conservative Party conference: “What a day.”

“It has been tough but we need to focus on the job in hand,” Chancellor of the Exchequer Kwasi Kwarteng told the conference in Birmingham.

Earlier in the day, Kwarteng and Prime Minister Liz Truss announced: “We get it, and we have listened.”

Ten days ago Kwarteng’s mini-budget triggered a collapse in the pound and a surge in the cost of government borrowing. The package contained £45 billion ($50.7 billion) in tax cuts funded through borrowing, on top of a multibillion-pound energy bailout.

The most controversial of the tax cuts would have removed the 45 pence tax rate for those earning over £150,000, which is Britain’s top tax rate.

The proposal provoked public fury, and the anger then spread to inside the center-right Conservative Party itself. Both the chancellor and prime minister defended the measure as pro-growth, but a combination of the market sentiment, public anger, and restlessness among Tory MPs forced the top two figures in British politics into a humiliating U-turn.

Conceding that his mini-budget had caused “a little turbulence” – in itself a huge understatement – Kwarteng continued by telling the conference: “We need to move forward. No more distractions. We have a plan and we need to get on and deliver it. That is what the public expect from the government.”

Kwarteng said the course the country was on was “unsustainable” and that the “price of inaction would have been far greater than the cost of the scheme.”

He defended his plan, which he said was meant to boost growth, and said it “isn’t radical, isn’t irresponsible.”

  • bio
  • twitter
  • facebook
  • latest posts

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.