Sterling rises amid reports that the British government will cut the tax rate to the highest levels

The cuts were poorly received by financial markets, and the abolition of the 45% tax paid on income over 150,000 pounds ($166,770) was seen as politically harmful as Britons grapple with the cost of living crisis.

with the ruling Conservative Party sink In the polls since the announcement was also made Criticize By the International Monetary Fund in a rare move, many politicians spoke out against the proposals.

Grant Shapps, the former transport minister, said in an interview with the BBC on Monday morning that the rollback of the tax cut at the highest rate was a “reasonable response” because the tax cut was “for people who need it less… which was unsustainable”.

It represents a major and humiliating turnaround for new Prime Minister Liz Truss, who has recently been insisting that she is “fully committed” to cutting.

She also revealed that the decision was made by Kwarteng and not made public to her entire Cabinet. The Treasury said the scheme would have provided an average of £10,000 in annual interest to the country’s largest 660,000 people.