The British Pound rebounded against the United States Dollar following an announcement by Kwasi Kwarteng, Chancellor of the Exchequer, that the plans to abolish the 45% tax rate for people earning more than 150,000 pounds ($168,000) has been abandoned.
In a statement published on his official Twitter handle @KwasiKwarteng, the chancellor said “from supporting British business to lowering the tax burden for the lowest paid, our growth plan sets out a new approach to build a more prosperous economy.
“However, it is a clear the abolition of the 45 percent tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.
“As a result, I am announcing we are not proceeding with the abolition of the 45 percent tax rate. We get it, and we have listened.
“This will allow us to focus on delivering the major parts of our growth package.”
He explained that his administration’s energy policy will support households and businesses with their energy bills. While the decision to cut taxes to put money back in the pockets of 30 million hard-working British people would help grow the economy.
The British Pounds responded positively to the news as it gained against the United States to close at 1.1333 on Monday.