UK scraps tax cut for wealthy that sparked market turmoilBIRMINGHAM, England (AP) — The U.K. government on Monday dropped plans to cut income tax for top earners, part of a package of unfunded cuts unveiled only days ago that sparked turmoil on financial markets and sent the pound to record lows. The turnaround came after a growing number of Conservative lawmakers, including former ministers with broad influence, turned on the government's tax plans. Truss defended the economic plan on Sunday but said she could have “done a better job laying the ground” for the announcements. She also said the decision to abolish the top tax rate had been taken by Kwarteng alone. Axing the top-earners tax rate would have cost about 2 billion pounds, a small share of the government’s overall tax-cutting plan.

Source: CBC News October 03, 2022 10:32 UTC