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UK PM Abandons Plan to Scrap 45p Top Rate of Income Tax Amid Tory Revolt
Liz Truss’s government has abandoned its plan to abolish the 45% top rate of income tax in a humiliating U-turn, after a growing Conservative revolt over the policy and a turbulent reaction from markets.
Announcing the decision in an early morning tweet on Monday, Kwasi Kwarteng said: “We get it, and we have listened.”
The chancellor said the decision to cut tax for people on incomes of £150,000 or more “has become a distraction from our overriding mission to tackle the challenges facing our country”.
He continued: “As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.”
But in a round of broadcast interviews hours before he was due to address the Conservative conference in Birmingham, Kwarteng denied his mini-budget 10 days ago had been a mistake, despite its impact on the pound and on the cost of government debt, which in turn has made mortgages more expensive.
Asked if the fiscal package, including a total of £45bn in unfunded tax cuts, had been an error, Kwarteng told BBC Radio 4’s Today programme: “I don’t recognise that at all. We were acting at very, very high speed.”
Kwarteng insisted much of the market turmoil was caused by international factors, and declined repeated invitations to apologise. “There’s humiliation and contrition and I’m happy to own it,” he said eventually.
It is nonetheless a significant reverse for a chancellor in the job for little more than three weeks, as well as for Truss. Kwarteng, who had been due to tell the conference that he was “confident our plan is the right one”, told Today he had not considered resigning.
The sudden change of course followed a realisation within Downing Street that so many Conservative MPs objected to the policy that it might be voted down in parliament, amid worries from voters about rising mortgage costs.
Kwarteng told Today that he and the prime minister had discussed their options over the weekend: “We were absorbing the reaction, and we were thinking, what are we going to do?”
Kwasi Kwarteng suggests Liz Truss took decision to U-turn on 45p rate
In an earlier interview with BBC1’s Breakfast, Kwarteng refused to concede the abolition of the 45p tax rate was a mistake, saying it was taking attention away from policies such as the intervention to limit energy bills.
“What I admit is it was a massive distraction on a strong package,” he said.
Kwarteng did, however, say he would “take responsibility” for the policy, adding: “I’ve said that I’ve listened. I get the reaction. I’ve spoken to lots of people up and down the country. I’ve spoken to constituents. I’ve spoken to MPs and councillors and other people in our political system. But most importantly, I’ve listened to voters.”
The chancellor said he had “decided, along with the prime minister”, that it should go: “We felt that the 45p issue was drowning out a strong package of intervention on energy, a strong package of intervention on tax cuts for people generally.”
Kwarteng declined to comment about whether his credibility as chancellor was now undermined, saying only that he was “100% focused on the growth plan”.
However, he declined to say whether the reduction in the amount of borrowing needed for tax cuts meant benefits could rise in line with inflation.
Labour’s shadow chancellor, Rachel Reeves, said the government had “destroyed their economic credibility and damaged trust in the British economy”. She added: “The Tories need to reverse their whole economic, discredited trickle down strategy.”
Ed Davey, the Liberal Democrat leader, said: “This humiliating U-turn comes too late for the millions seeing their mortgage rates soar because of this botched budget. The Conservatives must now cancel their conference and recall Parliament, to sort out this mess for the sake of the country.”
The pound soared in overnight trading on Monday as reports emerged that the government would U-turn. Sterling hit $1.125 at one stage, recovering to levels before the mini-budget, though it pared back some of the gains in early morning trading to stand at $1.119.
The overall package of unfunded tax cuts in the mini-budget triggered uncertainty in the City and was criticised by the International Monetary Fund. After a steep rise in the cost of government debt, the Bank of England made a a £65bn emergency intervention to restore order.
From mini-budget to market turmoil: Kwasi Kwarteng’s week timeline
At the conference, the former cabinet ministers Michael Gove and Grant Shapps had taken aim at the plan to cut the top income tax rate, with speculation the wider programme of tax cuts could be financed in part by cutting benefits.
Gove toured fringe events at the party conference in Birmingham to give his verdict on the plan, which he called “not Conservative”, hinting that he could vote against the measure in the Commons.
Shapps, the former transport secretary, used a column in the Times to say “this is not the time to be making big giveaways to those who need them least” because “when pain is around, pain must be shared”.
“This bolt-from-the-blue abolition of the higher rate, compounded by the lack in communication that the PM acknowledges, is an unforced error that is harming the government’s economic credibility,” he wrote.
News
Ignore Fake February 2 Sit-at-Home Order, IPOB Lawyer Tells South-East Residents
A human rights lawyer and lead counsel for the Indigenous People of Biafra, Sir Ifeanyi Ejiofor, has urged South-East residents to completely ignore what he described as a “fraudulent” sit-at-home order allegedly scheduled for Monday, February 2, 2026, by a faction of the group.
Recall that the pro-Biafran group, through its spokesman Emma Powerful, had directed a sit-at-home on February 2 across the region in solidarity with traders at the Onitsha Main Market.
Powerful said the total shutdown in Biafraland is a direct, peaceful, and unified response to the actions of Anambra State Governor, Prof. Chukwuma Soludo, who ordered the closure of the Onitsha Main Market for one week.
But in a counter statement released on Saturday, Ejiofor said the source behind the directive, operating under the guise of “Emma Powerful,” has been compromised and is acting against the collective interest of Ndi-Igbo.
He insisted that IPOB has formally and decisively distanced itself from the false sit-at-home order and directed Ndi-Igbo to go about their lawful activities without fear.
The statement read in part: “Once again, the well-worn theatre of misinformation has opened its curtains, this time with a particularly lazy script and an insultingly predictable cast.
“Late yesterday, a report was widely circulated alleging that a total lockdown of Ala-Igbo had been ordered under the guise of a sit-at-home directive purportedly issued by ‘Emma Powerful,’ slated for Monday, February 2, 2026.
“Let it be stated clearly, unequivocally, and without ambiguity: this directive is fake, a phantom, a calculated falsehood.
“Upon careful inquiry and diligent verification, especially considering the delicate and hard-won calm presently returning to our homeland, it became glaringly obvious that the so-called ‘Emma Powerful’ platform has been fatally compromised.
“It has been hijacked by vested interests whose business model thrives on fear, disruption, extortion, and the cynical exploitation of vulnerable communities.
“The peaceful global movement of the IPOB has formally and decisively disowned this fabricated publication, categorically distancing itself from the false sit-at-home order and directing Ndi-Igbo to go about their lawful and normal activities without fear.
“Going forward, the message from IPOB is unmistakable: any publication attributed to ‘Emma Powerful’ should be treated with extreme suspicion, if not outright contempt.
“Frankly, one cannot but express astonishment, bordering on disbelief, that at such a critical juncture, when relative peace is cautiously resurfacing in Ala-Igbo, anyone would recklessly circulate information capable of reopening wounds and inviting criminal infiltration.
“History has taught us, at unbearable cost, what happens when fake directives fall into the hands of violent opportunists masquerading as enforcers.
“It is therefore no longer sufficient to merely advise our people to ‘ignore’ publications from this source. The time has come for greater clarity and firmness. The platform known as ‘Emma Powerful,’ in its current corrupted state, has positioned itself as an adversary to Ala-Igbo’s peace, progress, and collective well-being.”
According to Ejiofor, the peaceful global movement must go further by publicly and definitively explaining why this source has become unreliable, compromised, and hostile to the collective interest of Ndi-Igbo. Silence, ambiguity, or polite distancing, he said, only leaves room for further abuse.
“A masquerade that dances with fire should not be mistaken for a messenger of truth,” the statement concluded.
News
Joint Task Force Crushes Terrorist Cells In North East, Heavy Weaponry Seized
In recent operations across the North East, troops of the Joint Task Force Operation HADIN KAI (OPHK) have neutralized scores of terrorists and recovered a significant cache of arms and ammunition.
Lieutenant Colonel Sani Uba, Media Information Officer, Headquarters Joint Task Force (North East) in a statement said intelligence has confirmed the killing of JULAIBIB, a top ISWAP commander operating within the Gujba axis of the Timbuktu Triangle, during an encounter around Kimba, Damboa LGA of Borno State, on 30 January 2026.
According to the statement, the elimination of the terrorist leader has thrown ISWAP elements in the area into disarray, with several fighters reportedly neutralised during the operation.
In a related operation, troops of OPHK, working in collaboration with the Civilian Joint Task Force, neutralised 3 terrorists during a well-coordinated ambush between Ngazalgana and Lamusheri communities in Borno State.
It said the operation followed credible intelligence on insurgent movements in the area, as troops laid an ambush along the identified route and engaged the terrorists with effective firepower, resulting in the neutralisation of 3 insurgents, while others fled with gunshot injuries.
The statement said troops recovered two AK-47, adding that the operation forms part of sustained efforts to deny terrorists freedom of movement and degrade their operational capabilities across the Theatre.
It said troops also recorded multiple successes in Adamawa State, adding that on 29 January, 2026, troops responded swiftly to a distress call from Barama community, Mubi North LGA, foiling an armed robbery attempt. Two armed robbery suspects attempting to attack a student of the Federal Polytechnic, Mubi, were arrested. One suspect sustained a gunshot wound to the thigh while attempting to confront the troops and was evacuated to the Federal Medical Centre, Mubi, for treatment.
The suspects were subsequently handed over to the Nigeria Police for further investigation. Items recovered include 3 cutlasses, 2 laptops, 4 mobile phones, and one power bank.
News
Appeal Court Affirms Death Sentences for Five Offa Bank Robbery Convicts
The Court of Appeal sitting in Ilorin, Kwara State has affirmed the death sentences passed on five 2018 Offa robbery convicts.
The court dismissed their appeals as lacking merit.
The Director of Public Prosecution (DPP) in the state, Mohammed Akande, who witnessed the proceedings, said that the three Appeal Court judges unanimously agreed on the judgement and affirmed the verdict of the state High Court condemning the five persons to death by hanging.
“The Court of Appeal, Ilorin Division comprising of Hon. Justice Ridwan Maiwada Abdullahi JCA, Hon. Justice Gabriel Kolawole JCA and Hon. Justice Abdul Dogo today, Friday affirmed the judgment of Hon. Justice H. A. Saleeman of the Kwara State High Court, that sentenced the Appellants: Niyi Ogundiran, Salawu Azeez, Ibikunle Ogunleye, Ayoade Akinnibosun and Adeola Abraham to death by hanging for the involvement in the Offa Bank Robbery”.
Another official of the Court also said that the appellate court rejected all the grounds of appeal filed by the convicts and ordered their immediate return to prison custody.
“The court dismissed all their grounds of appeal and upheld their convictions. They have been taken back to prison,” the official said.
The official said that the arguments raised at the Court of Appeal were unconvincing and may not succeed if repeated at the apex court.
It is recalled that Ayoade Akinnibosun, Azeez Salahudeen, Niyi Ogundiran, Ibikunle Ogunleye and Adeola Abraham were convicted of armed robbery, illegal possession of firearms and culpable homicide.
A sixth suspect, Michael Adikwu, a retired police officer, died in custody before the commencement of the trial.
At least 32 people were killed, including nine police officers, two of whom were women, making it one of the deadliest bank robberies in Nigeria’s history.
Justice Haleemah Saleeman of the Kwara State High Court had earlier sentenced the five convicts to death by hanging after a trial that lasted about six years and attracted nationwide attention.
In her judgment, which lasted over four hours, Justice Salman held that the prosecution proved its case beyond reasonable doubt.
She said the convicts “acted contrary to the law and allowed their connections with those in power at the time to lead them astray”.
In addition to the death sentence, the trial court also sentenced them to three years’ imprisonment for illegal possession of firearms, in line with provisions of Nigeria’s penal laws.
Lead prosecution counsel, Rotimi Jacobs (SAN), described the appellate court’s decision as thorough and well considered, despite the prolonged delays that characterised the trial.
On the defence side, Abdullah Jimba, counsel to one of the convicts, said that preparations were underway to pursue a final appeal at the Supreme Court.
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