KWARTENG FORCED INTO MAJOR U-TURN ON 45p TAX CUT

REVERSE IS BLOW TO PM AND HER CHANCELLOR

- Nicholas Cecil, David Bond, Rachael Burford and Jonathan Prynn

KWASI KWARTENG was forced into a screeching U-turn today on his plan to ditch the 45p top rate of income tax.

With the ink hardly dry on his mini-budget 10 days ago, the Chancellor bowed to a revolt of Tory MPs opposed to him abolishing the tax rate for people earning more than £150,000 in the middle of a cost-of-living crisis. He announced the climbdown shortly before 7.30am and just hours before his keynote speech to the Tory rally in Birmingham.

Markets reacted positively early this morning, with the pound gaining strength. But the debacle left his, and Prime Minister Liz Truss’s political authority badly damaged, especially as only the day before they were insisting that they were ploughing ahead with the policy, even if it was unpopular. Seeking to explain his volte-face, Mr Kwarteng told the BBC: “The conversation about the 45p rate was this terrible distraction really from what was a very, very strong plan.” Taking “full responsibility” for the situation, he added: “There’s humiliation and contrition and I’m happy to own it.” Asked if he had considered resigning, he said: “Not at all.” He also stressed: “We get it and we have listened.”