UK PM Truss Says 'No Shame' in U-Turn on Cutting Highest Income Tax Rate

Cutting the Additional Rate to the 45p-in-the-pound Higher Rate paid on earnings from £50,000 to £150,000 was announced in last week's mini-budget statement by Chancellor of the Exchequer Kwasi Kwarteng — who admitted on Monday that it had caused 'a little turbulence' in the currency and bond markets.

British Prime Minister Liz Truss has said there was "no shame" in the government's U-turn on abolishing the highest rate of income tax.

Interviewed by Sky News political editor Beth Rigby on Tuesday on the sidelines of the Conservative Party conference in Birmingham, Truss claimed reversing the abolition of the 45 per cent rate paid on income over £150,000 per year showed the government was listening to ordinary peoples' concerns.

"I was clear during the leadership election that we are facing very tough economic times, and it would be difficult, and we would have to make difficult decisions," Truss insisted.

Rigby pointed out that Truss also pledged to stick to her decisions, but had u-turned on the tax cut for the very highest-paid — for fear of a rebellion by backbench MPs.

"I listened to people and I think there's absolutely no shame in a leader listening to people and responding," Truss responded. "And that's the kind of person I am, and I've been totally honest and upfront with people."

PM Liz Truss has told @BethRigby she has "absolutely no shame" in performing a U-turn on the government's plan to scrap the 45p higher rate of tax.

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"But everything I've done as prime minister is focused on helping people get through what is a very difficult winter and very difficult circumstances and putting our country on a stronger footing in the future," she insisted.

Cutting the Additional Rate to the 40p-in-the-pound Higher Rate paid on earnings from £50,000 to £150,000 was part of Chancellor of the Exchequer Kwasi Kwarteng's mini-budget last Friday.

Kwarteng conceded in his conference speech on Monday that his mid-year budget statement had caused "a little turbulence" after the pound sterling fell to near-parity with the US dollar over the weekend — before recovering to its previous level of $1.13.

The mini-budget also saw a 1p cut in the basic income tax rate from 20 to 19 per cent, along with a doubling of the threshold for paying Stamp Duty — the tax on buying a home or other property.