Chancellor does U-turn on top rate tax cut

Grant Prior 2 years ago
Share

Chancellor Kwasi Kwarteng has confirmed he will not be cutting the 45p rate of income tax on people earning more than £150,000 a year.

Kwarteng said the planned top rate tax cut had become a “distraction” from the Government’s growth package unveiled ten days ago.

Since then the markets have been in meltdown and opposition to tax cuts for highers earners has grown.

Kwarteng said: “From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy.

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

“As a result I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.

“This will allow us to focus on delivering the major parts of our growth package.”

That package includes accelerating the delivery of over 100 major infrastructure projects across the country, 38 new Investment Zones, the scrapping of some planning restrictions and dumping next year’s scheduled increase in corporation tax.

Latest news

Crest Nicholson rejects £650m Bellway bid

Bellway confirms recent bid for rival
5 hours ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
16 hours ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
14 hours ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
19 hours ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
19 hours ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
1 day ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
2 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
2 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
20 hours ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
2 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
2 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
2 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
2 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
2 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
2 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
2 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
3 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
3 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
3 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
3 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
3 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
3 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
4 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
4 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
4 days ago

Knight Build owed money for work on UK’s poshest street

Contractor takes legal action over unpaid bills on new luxury flats complex
4 days ago

Winvic ranks top of May contracts league

Large residential scheme in Leeds caps strong haul of orders
4 days ago

Bid race starts for up £95m repairs to PFI hospital

Roseberry Park Hospital in Middlesbrough hit by serious defects
4 days ago

Building Safety changes slow down construction recovery

Confused market contains paradox of falling workload and contractors claiming they are too busy
4 days ago

Wates rejigs businesses as veteran leader retires

Wates Construction Group MD Paul Chandler to retire at end of year
1 week ago

Contractor services