The UK economy was plunged into turbulence after the government announced the largest tax cut package in a generation on September 23.
In a statement made today by Minister Kwarteng, statements were used for the budget proposal that “destroyed the focus of our primary mission of overcoming the challenges facing the country”.
Regarding the withdrawal of the package, which has been frequently criticized from different aspects since its announcement, Kwarteng told the BBC that they listened to the concerns, made the right decision and will proceed in this direction.
The 45 percent tax reduction plan, paid by those who earn more than £150,000 a year, was unfairly criticized as living costs continued to rise.
The U-turn was announced after some Conservative Party lawmakers voiced their opposition to the plan.
When asked how the U-turn signals his credibility as finance minister, Kwarteng replied: “We’re focused on a 100 percent growth plan.” said and added:
“I’ve been in Parliament for 12 years, there have been many policies where the government has decided to change its mind by listening to the people.”
When asked if he was considering resigning, Kwarteng said he had “never thought of it”.
Kwarteng also said that they made the decision together with Prime Minister Truss.
Prime Minister Truss told the BBC on Sunday he was absolutely committed to the package as part of his plan to “simplify” the tax system and boost growth.
However, there were many objections to the package from the markets, opposition parties and Conservative Party lawmakers.
It turned out that Truss could not find sufficient support for the package.
Former cabinet minister Grant Shapps had warned that Truss would lose the House of Commons vote on the budget proposal.
Shapps also urged Truss to take a U-turn and not listen to voters’ concerns about the cost of living.
“I don’t think the House is in a position to support that,” Shapps told the BBC.
On Sunday, MP Michael Gove, a senior member of the Conservative Party, said “I don’t believe it’s correct”, implying that he would vote against the plan when it gets to Parliament.
Kwarteng is expected to make a statement during the day.
The currency hit a record low last week as markets scrambled over Kwarteng’s mini-budget with tax cuts.
COMMENT FROM BBC POLICY REPORTER CHRIS MASON
At our meeting on the top floor of the Empire State Building in New York two weeks ago, Prime Minister Tuss told me that he was willing to do unpopular things.
This theory, which he tested to his death, sent his party’s popularity in the polls as low as the height of a New York skyscraper.
Markets spooked, Conservative lawmakers more spooked—a policy designed to exclude just about everyone. Conservative lawmakers said that this package would not be supported.
The decision leaves the new Finance Minister, Kwasi Kwarteng, and thus the prime minister, collapsed, humiliated, scarred and weakened. But Liz Truss hopes the decision will create space for progress by pulling herself out of the political quagmire of the exploding budget statement as soon as it comes into contact with political reality.
This is another decisive moment for a young government that is not yet a month old.