UK PM Truss "No Shame" in U-Turn on Tax Cut Proposal for Rich

"I was clear during the leadership election that we are facing very tough economic times, and it would be difficult, and we would have to make difficult decisions," Truss insisted.

The policy flip flop comes in light of British Finance Minister, Kwasi Kwarteng, reversing on Monday the controversial decision to lower taxes on the richest, ten days after announcing this measure badly received by financial markets, voters and his Conservative Party.

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This dramatic turnaround comes less than a month after the formation of the new government by Conservative Liz Truss, who succeeded Boris Johnson as the new Prime Minister on September 6, championing a controversial ultra-liberal economic program.

The measure was to abolish the top income tax bracket at 45%.

But it is part of a broader economic package that includes abolishing the cap on bankers' bonuses and revising a planned increase in corporate tax and a recent rise in social security contributions.

At the same time, Truss and Kwarteng did not rule out cutting public spending and welfare payments despite the UK experiencing a severe cost-of-living crisis, driven by 10% inflation and rising. 

The government also announced on September 23 a plan to support households in the face of soaring energy costs.

However, the package was criticized as favoring the richest and provoked a political storm just as the Conservatives gather for a congress that was supposed to celebrate Truss's election but ended up becoming the first challenge to their legitimacy.

In the election to succeed Johnson, numerous Conservative MPs, supporters of his rival Rishi Sunak - former Finance Minister - threatened to vote against him, announcing a possible new revolt in the House of Commons.