Kwasi Kwarteng U-turns on abolition of 45p tax rate mini-budget announcement calling it “a distraction”

Chancellor of the Exchequer Kwasi Kwarteng has announced this morning a U-turn on one of his announced tax plans.

The 45p tax rate abolishment against higher earners was an unpopular decision after Kwarteng’s mini-budget on September 23, where the top 1% of wealthy people were to stop paying a 45p tax rate on their finances.

Such a move would see £6bn no longer generated in tax-based revenue, with The Guardian reporting “our analysis shows that more than two-thirds of the total tax saving will go to those with an annual income over £500,000 each – just 0.1% of adults.”

“In fact, incomes are so concentrated at the very top that cutting the 45p rate will hand a £1bn windfall to Britain’s richest 2,500 individuals. That’s an average of £400,000 each.”

How did Kwasi Kwarteng make the announcement?

In a tweet from his official Twitter account, Kwarteng wrote that the abolishment of the 45p tax was “a distraction” from the overall message the government looked to make at the mini budget; kickstarting the UK economy.

“From supporting British business to lowering the tax burden to our lowest paid, our Growth Plan set out a new approach to build a new prosperous economy.”

“However, it is clear that the abolishment of the 45p tax rate has become a distraction from our overriding mission to tackle challenges facing this country.

“As a result, I am announcing we are not proceeding with the abolition of the 45p tax rate.

“We get it, and we have listened.”