Express coaster.

The United Kingdom announced, Monday, October 3, to reconsider the income tax reduction measure for the richest, unveiled ten days ago and which plunged the financial markets into turmoil.

"It is clear that the removal of the 45% tax rate has overshadowed our mission to tackle the difficulties in our country. Therefore, I am announcing that we will not pursue it," the finance minister tweeted. , Kwasi Kwarteng, adding: "We understand, we have listened".

"This will allow us to focus on implementing the main elements of our growth plan. First, the ceiling on energy prices", detailed the minister.

This measure is valued at 60 billion pounds for only six months, while it should last for two years for households.

Liz Truss, who arrived in Downing Street in early September, and her Chancellor of the Exchequer, Kwasi Kwarteng, announced on September 23 a massive energy support plan for households, accompanied by vast tax cuts.

>> To read also: fall of the pound sterling: the revolt of traders against tax cuts for the rich

The cut in income tax for the upper bracket, which would have fallen from 45% to 40%, has been particularly controversial, accused of favoring the wealthiest in the midst of the crisis in the cost of living in the United Kingdom.

Other tax cuts have also been announced, including the abolition of corporate tax increases or social security contributions, and a suspension of environmental levies. 

The plan as a whole, estimated at between 100 and 200 billion pounds by economists but whose financing and economic impact have not been fully quantified, had thrown confusion on the financial markets.

The pound plunged to an all-time low, and UK government borrowing rates jumped to their highest since the 2009 crisis, threatening the country's financial stability.

The Bank of England intervened urgently last week to stabilize rates, which threatened to bankrupt pension funds.

Asked on the BBC about his possible resignation, the Chancellor of the Exchequer firmly dismissed the possibility.

With AFP

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