It is being reported today that the 45p tax rate cut that was announced in the mini-budget 10 days ago is now going to be scrapped due to the lack of support from the Conservative back benchers.

Kwasi Kwarteng had announced on 23rd September that the top rate of tax of 45% would be removed for people earning over £150,000.

However, there was a big backlash from many people including some of the people that would be affected by the scrapping of the tax rate, saying that it went totally against the current climate of helping those who most needed the help, and only helping wealthy people.

Kwasi Kwarteng has said that he has talked to people and listened to people and that the focus on the 45% tax rate cut was a distraction from their package to reignite the economy.

We get it, and we have listened. pic.twitter.com/lOfwHTUo76

— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022

This U-turn on the 45p tax rate cut also comes after Liz Truss had defended the plan in the mini-budget.

The mini budget also included plans to bring forward the 1p tax rate cut for basic rate taxpayers, reducing the rate from 20% to 19% with effect from April 2023.

The budget changes need to be approved by the house of commons and the worry was that the 45p rate cut would stop the changes being approved if some Tories voted against it.