Britain will leave in place a 45% tax for the rich

British Chancellor of the Exchequer Quasi Kwarteng said BBCthat the government decided to abandon the idea of ​​abolishing the increased tax rate of 45% for people with incomes of more than £150,000 a year after a wave of criticism against the authorities.

“We listened to people, I understood everything,” said Mr. Kwarteng. “The Prime Minister decided not to cancel the rate.” The finance minister added that the item was removed from the agenda as it “distracted from a strong package of measures” to support the economy.

Ministry of Finance published plan to support the economy last week. Among other things, it provided for a significant tax cut: the base income tax rate of 20% from April 2023 will be reduced to 19%, and there will be no planned increase in corporate income tax from 19% to 25%. The rate of additional taxation for persons with incomes of more than £150 thousand was to be reduced to 40%, which caused discontent in society and opposition in the government.

After the publication of the plan to support the economy from Liz Truss, the pound sterling fell to a historic low against the dollar, and investors began to massively sell UK government bonds. As soon as the first reports appeared in the media about maintaining the tax rate of 45% for the rich, the pound rose against the dollar by 0.8%.

Kirill Sarkhanyants