Kwasi Kwarteng has U-turned on plans to scrap the 45p rate of income tax for the UK’s highest earners.
The sudden change of heart comes just 10 days after the Chancellor unveiled his mini Budget, which has led to 10 days of market turmoil and fierce pressure from within the Conservative party.
Just yesterday, Prime Minister Liz Truss insisted that the tax cut, which would benefit Brits earning more than £150,000, would go ahead.
"Are you absolutely committed to abolishing the 45p tax rate for the wealthiest people in the country?" "Yes." Only yesterday. pic.twitter.com/P2o08WxVu5
Mr Kwarteng said that the proposals had ‘become a distraction’ in a statement released this morning.
Given that his Growth Plan has been labelled a ‘Kami-Kwase Budget’, that would seem to be an understatement.
ADVERTISEMENT
“We get it, and we have listened,” he wrote.
His statement says: “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.
ADVERTISEMENT
“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.
ADVERTISEMENT
“First, our Energy Price Guarantee, which will support households and businesses with their energy bills. Second, cutting taxes to put money back in the pockets of 30 million hard-working people and grow our economy.
“Third, driving supply side reforms – including accelerating major infrastructure projects – to get Britain moving.”
Mr Kwarteng’s U-turn on the 45p tax cut policy has been described as ‘humiliating’ and comes on the second day of the Tory party conference in Birmingham.
Former Transport Secretary Grant Schapps said: “Strongly welcome today’s 45p tax reversal. Sensible & pragmatic.
“Conservatives want lower tax, but let’s show our energy price cap + other policies are on side of consumers rather than borrowing to cut high earner taxes first.”
ADVERTISEMENT
Piers Morgan said: “Tories to U-turn on 45p tax rate cut. Humongous humiliation for @trussliz @KwasiKwarteng and worse possible start to their conference. She’ll have to sack him, surely?”
Tories to U-turn on 45p tax rate cut. Humongous humiliation for @trussliz @KwasiKwarteng and worse possible start to their conference. She'll have to sack him, surely?
New £60m fund launched to fill potholes across Greater Manchester
Emily Sergeant
A new £60 million Pothole Fund has been created to repair more of the city region’s roads and pavements.
The fund – which has been set up by new Mayor Bev Craig, and is to be spent across every borough in Greater Manchester – is set to be a ‘major boost’ to efforts to tackle the pothole problem, as it will be enough to repair and maintain over a million square metres, or around 125 kilometres, of road across the wider region.
Around 2.5 billion trips are made on Greater Manchester‘s roads every year – not only by motorists, but also by buses, trams, cyclists, and pedestrians. So the fund will be used to help keep the highways network ‘safe and reliable’.
The fund will enable transport teams to repair hotspots where surfaces are in poor condition, as well as resurface roads and pavements to prevent them from deteriorating in the first place.
A new £60m fund has been launched to fill potholes across Greater Manchester / Credit: TfGM
Cold and wet winters, more traffic, and heavier vehicles using the roads are just some of the contributing factors to the pothole problem, which is why the fund is being introduced before autumn and winter properly arrives.
The amount each of the 10 boroughs will receive is based on an agreed funding formula, with the allocations being:
Bolton: £6,552,000
Bury: £4,374,000
Manchester: £8,155,000
Oldham: £5,258,000
Rochdale: £5,243,000
Salford: £5,388,000
Stockport: £6,820,000
Tameside: £4,980,000
Trafford: £4,992,000
Wigan: £8,241,000
The extra cash comes from the region’s transport budget, with leaders agreeing to reallocate funding towards highways maintenance, and it fulfils a commitment Bev made in her Mayoral Manifesto to repair more roads and make sure pavements are safe.
“Keeping our roads and pavements safe and well maintained is essential for a growing city region like Greater Manchester,” explained Mayor Bev Craig.
“That’s why I promised to create this new Pothole Fund that will benefit drivers and everyone who uses our roads to get around. Properly maintaining our roads will save motorists money on costly repairs, and by preventing potholes forming in the first place, councils won’t have to spend as much money on emergency road repairs.
“This issue came up repeatedly on the doorstep during my election campaign so I’m pleased that I can do something about it so quickly, building on the significant work already planned by councils across Greater Manchester.”
Featured Image – TfGM
News
Six GMP officers dismissed following racial discrimination allegations
Emily Sergeant
A number of police officers have been dismissed following an internal investigation, Greater Manchester Police (GMP) has confirmed.
Following the internal investigation into alleged racial discrimination against an officer on the Bury district – which was launched by GMP‘s Professional Standards Directorate in July 2024 – six officers and two former officers were found to have committed gross misconduct, and a ninth officer was found to have committed misconduct.
The investigation came after a report was made that an officer had been subjected to ‘racist behaviour’ by colleagues in December 2023.
The panel heard how PC Y – who has African heritage and has been granted anonymity – made a complaint after her accent was mimicked by a group of officers. She was also compared to a suspect with similar skin colour, and one of the dismissed PCs made a derogatory comment about her hair.
PC Y was supported and kept updated throughout the investigation, GMP assured, as well as providing evidence at the hearing.
The misconduct hearing lasted just over two weeks, with the panel concluding that the officers breached the Standards of Professional Behaviour relating to Equality and Diversity, Authority, Respect, and Courtesy.
The six officers who have been dismissed are PC Demi Green, PC Heena Rani, PC Lucy Granby, PC Matthew Barlow, PC Matthew Hill, and PC Mohammed Abid, while the former officers who were found to have committed gross misconduct are PC Jake Holt, and former Officer A – who has been granted anonymity.
The panel also found that Sergeant Adrian Bick’s actions amounted to misconduct, as there was no breach of the standard of equality and diversity.
As a result, the six serving officers have been sacked without notice, while the two former officers would have been dismissed had they not already left the force, and Sergeant Bick was issued a written warning.
“No officer or member of staff should have to come to work and experience discriminatory behaviour from the people they serve alongside,” declared Deputy Chief Constable, Terry Woods.
“Everyone has the right to feel respected, valued and part of the same team with a shared commitment to serving our communities and keeping people safe.”