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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.
Islamic cleric Sheikh Ahmad Gumi recently defended his past interactions with armed groups, stating he “took the bull by the horns” in 2021 as a necessary step to address Nigeria’s insecurity.
In a post shared on Facebook on Thursday, Gumi said decades of neglect of disadvantaged populations had created deep socio-economic inequalities, leaving many youths vulnerable to manipulation by external forces seeking to destabilise the country.
According to him, the widening gap between the rich and the poor has turned many young people into “ready-made foot soldiers” in cycles of violence that enable the exploitation of Nigeria’s resources.
He also criticised the political class for being largely unresponsive, while noting that the intellectual community is preoccupied with survival struggles.
Reflecting on his past efforts, Gumi said he “took the bull by the horns” in 2021 by attempting to reintegrate violent elements into society rather than allowing them to be further radicalised.
He wrote: “Nigeria for decades has ignored the underprivileged section of its society. There is a significant socio-economic discrepancy, and the society is stratified. This makes our teaming youth ready-made foot soldiers for any foreign interest trying to divide us and rule. To plunder our resources while we are involved in a vicious circle of violence.
”Unfortunately, the political class is unattentive while the intelligentsia is held hostage in the struggle for existence.
“In 2021, I took the bull by the horns in an attempt to bring some of these uncouth elements back to our fold rather than letting them be exploited by the devil.
“I still believe this is the only way out of our predicament. However, it needs the political will and determination to achieve.
“May Allah bring peace back to our nation.”
The Federal High Court in Abuja rejected an ex-parte application seeking to bar Senator Ireti Kingibe from participating in the activities of the African Democratic Congress (ADC).
Justice Peter Lifu declined the request from Wuse Ward leaders, ruling that such an order could not be granted without first hearing from the senator.
Instead, the judge ordered the ward leaders said to be loyal to the Minister of the FCT, Nyesom Wike, to put the senator on notice to appear in court to join issues with them on their grievances.
Justice Lifu in a ruling on Thursday held that discretion in such a request for prohibition from party activities and in political matters must be exercised judicially and judiciously.
The judge said justice would be met in the case of the plaintiffs only when the side of the defendant is heard on its merit, along with that of the plaintiffs.
Consequently, the judge ordered that Senator Ireti Kingibe should be served with all court processes by the plaintiffs to enable her become aware of the suit and to prepare her defense.
The judge fixed April 20, 2026, for the plaintiffs and the serving senator to appear before him for hearing of all applications in the matter.
Those who sued the senator in the suit marked FHC/ABJ/ CV/539/2026 are Okezuo Godfrey Anayo and Isaiah Ojonugwa Samuel, on behalf of themselves and ward members as plaintiffs. The senator is the sole defendant.
In their ex-parte application, Kingibe representing the FCT in the Senate was said to have been suspended on March 10, 2026 by her Wuse Ward executives following allegations of anti-party activities and disregard of your cnstitution of the ADC.
In the ex- parte application filed on their behalf by a Senior Advocate of Nigeria, SAN, Kolawole Olowookere, the aggrieved ADC members in Wuse Ward applied for an order of interim injunction restraining Kingibe from parading herself as a member of party, pending the hearing and determination of their motion on notice for interlocutory injunction.
They also asked the judge to restrain the senator from performing any function, attending meetings or performing activities reserved for ADC members or representing the party in any activities.
Besides, the Ward Executive Committee had asked that she be restrained from further interfering with the administration of the ward, ward register and other activities.
The suit was predicated on five grounds among which are that Mrs Kingibe was placed on suspension due to anti-party activities, gross misconduct and confiscation of the ward statutory records.
They argued that the suspension followed due process as enshrined in the ADC constitution and ratified by the two thirds majority of the EXCO members.
They averred that despite the communication of the suspension to Kingibe, she has continued to hold parallel meetings, issue press statements as an ADC member, and using her security details to intimidate the executive committee.
“Her actions constitute flagrant disregard to the internal mechanism of the party,” the plaintiffs stated.
Meanwhile, a lawyer, Abubakar Marshall who claimed to be representing the senator, announced that he had filed a preliminary objection against the suit. He added that it was served on M. S. Garba, who stood for the plaintiffs at Thursday’s proceedings.
The Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, visited Jos, Plateau State, on Thursday, April 2, 2026, to lead a high-powered security assessment following recent security breaches.
The visit was aimed at strengthening public confidence and reinforcing ongoing efforts to stabilize affected communities.
Colonel Appolonia Anele, acting Director, Army Public Relations, said in a statement that the visit forms part of ongoing efforts to restore calm and entrench lasting peace across the state.
According to the statement, upon arrival, the COAS was received by the Executive Governor of Plateau State, Caleb Mutfwang, in a clear demonstration of strong civil-military cooperation and a shared commitment to addressing emerging security challenges.
The statement said the COAS received a comprehensive operational briefing from the General Officer Commanding 3 Division and Commander, Joint Task Force Operation ENDURING PEACE, Major General Folusho Oyinlola, who highlighted ongoing operations and proactive measures being implemented in synergy with other security agencies to contain threats, protect lives and property, and stabilise affected communities.
“As part of his engagements, Lieutenant General Shaibu also interacted with community leaders and residents, reassuring them of the unwavering commitment of the Nigerian Army to safeguarding all law-abiding citizens.
He urged residents to remain calm, vigilant and supportive of security agencies by complying with the curfew and cooperating fully with ongoing operations and investigations, while going about their lawful activities.
The chairman of Jos North Local Government Area, Hon. Dachung Bagos, commended the COAS for the timely visit, noting that the presence of the nation’s top military leadership would boost public confidence and reinforce trust in ongoing security efforts.
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