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Follow MailOnline's liveblog for updates as Chancellor Kwasi Kwarteng is expected to make an abrupt U-turn over the abolition of the top rate of income tax:
On the Government scrapping plans to axe the 45p top rate of tax, the director-general of a free-market think tank said: 'I've known Liz Truss for many years and I can't think of another time where she's changed her mind on anything, anything at all.'
Mark Littlewood, of the Institute of Economic Affairs, told BBC Radio 4's Today programme: 'As a matter of principle I would have liked to have got rid of this rate, I think it's a complication in the tax code, I think it raises virtually no money.
'But this has become a political hot potato, they have decided this is not the hill they're going to die on, a tax that raises £2 billion or so.
'Of course, it will raise the question that the next time Kwasi Kwarteng makes an announcement that Grant Shapps and Michael Gove don't like, does that announcement stick?'
A Truss U-turn on tax and an increase in both legal and illegal immigration points to a 1997 style wipeout. It will be fully deserved.— Nigel Farage (@Nigel_Farage) October 3, 2022
UK gov u-turns on top tax rate abolition because it’s a ‘distraction’. Morally wrong and hugely costly for millions is a better detwitter_scription. Utter ineptitude.— Nicola Sturgeon (@NicolaSturgeon) October 3, 2022
Perhaps those who slammed @scotgov for not immediately following suit should also be reflecting this morning…
We get it and we have listened.— Liz Truss (@trussliz) October 3, 2022
The abolition of the 45pc rate had become a distraction from our mission to get Britain moving.
Our focus now is on building a high growth economy that funds world-class public services, boosts wages, and creates opportunities across the country. https://t.co/ee4ZFc7Aes
They need to reverse their whole economic, discredited trickle down strategy.— Rachel Reeves (@RachelReevesMP) October 3, 2022
Their kamikaze Budget needs reversing now.
As the party of fiscal responsibility and social justice, it will come to the Labour Party to repair the damage this Tory government has done. 3/3
The PM has been forced to abandon her unfunded tax cut for the richest 1%.— Rachel Reeves (@RachelReevesMP) October 3, 2022
But it comes too late for the families who will pay higher mortgages and higher prices for years.
The Tories have destroyed their economic credibility and damaged trust in the British economy. 1/3
Strongly welcome today's 45p tax reversal. Sensible & pragmatic.— Rt Hon Grant Shapps MP (@grantshapps) October 3, 2022
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.
Chx backs down on 45p tax https://t.co/uhIeaPCudh
We get it, and we have listened. pic.twitter.com/lOfwHTUo76— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022
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