Scrap 45p tax

Kwasi Kwarteng is facing a mounting rebellion in the ruling Conservative party over his plan to scrap the 45p top rate of income tax but will tell party members today that he is «confident» the plan is «the right one». The UK chancellor’s tax-cutting «mini» Budget, which also included a massive wave of new government borrowing, created turmoil in the markets last week and left him scrambling to prove that he could get a grip on debt.

Truss admitted that mistakes were made in the «mini» Budget that sparked market turmoil last week but said she would not retreat on her plan to deliver £45bn of unfunded tax cuts, insisting it would help deliver growth. However, the PM repeatedly refused to say whether she would cut public spending to make the sums add up and said she needed to work to win «the hearts and minds» of Tory MPs to convince them her plan was right. Some Conservative MPs have already started speculating on the possibility that Truss could be replaced by her leadership rival, Rishi Sunak, who is spending conference week in his North Yorkshire constituency.

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