Chancellor scraps 45p tax rate cut plans 

Paid by people earning more than £150,000 a year, it was announced as part of a package of tax cuts in the mini-budget on 23 September. 

In a statement published on Twitter, he said the abolition became a "distraction" from the government’s “overriding mission to tackle the challenges facing our country”. He added: “We get it, and we have listened.

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

Meanwhile, speaking to BBC Breakfast, Kwarteng explained the proposal was “drowning out a strong package” of measures, including support for energy bills, and cuts to the basic rate of income tax and corporation tax. 

Also asked whether his previous comment that there was “more to come” on tax cuts still stood, he said there would be no tax cuts ahead of the next budget in the spring. 

In response, shadow chancellor Rachel Reeves said the abandonment of the policy “comes too late for the families who will pay higher mortgages and higher prices for years”. She added: “The Tories have destroyed their economic credibility and damaged trust in the British economy. 

“There’s no plan to clear up the mess of 12 years of Tory government. They’re making it up as they go along. This is not over - it’s not just some distraction. 

They need to reverse their whole economic, discredited trickle down strategy. Their kamikaze budget needs reversing now.” 

Following the announcement, the pound-to-dollar rate rose by a percent to £1.1250, taking bank payment rates to around 1.0980, while the pound-to-euro exchange rate rose two-thirds of a percent to £1.1430.