Kwarteng’s U-turn on 45p tax bracket: Sunderland has its say

The UK Government made a U-turn by abolishing the 45p tax bracket after a week of the pound fluctuating in value. 

Kwasi Kwarteng announced that the tax bracket for those earning over £150,000 will remain in place following a tweet made on the second day of the Conservative Party conference. 

The original policy was announced in the Chancellor’s mini-budget alongside the announcement of reversing national insurance tax rises and cutting stamp duty. 

In his tweet, Mr Kwarteng said: “it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission”.

We get it, and we have listened. pic.twitter.com/lOfwHTUo76

— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022

This comes as the pound took a hit in its value in the week following the mini-budget, falling to its lowest point at $1.03 USD in value before recovering slightly.

He added: “We get it, and we have listened.”

But did they get it? Those out and about in Sunderland were asked what they thought about the government’s U-turn and what that says about the strength of the Government.

When asked about the U-turn, Kevin, 58, unemployed said: They shouldn’t have brought it out in the first place.” He added: “It’s cost a lot of money, hasn’t it?”

Hepburn based Martina, 66, retired said: “It’s a good thing, the government listened.” She added: “They more or less apologised, which is very unusual for politicians.” 

Athena, 32, a student from Bolton said: ‘The top 1% were making money off the pound crashing.” She went on to say: “It makes the Government look like they don’t care about their country.” 

Gary, 28, barista from South Shields said: “I think it’s good that they’ve removed it. It’ll be better for people.”

There has also been reaction from north-east MPs. Jarrow MP for Labour Kate Osbourne tweeted: 

Even with U-turn on 45% Tories are continuing with their reverse Robin Hood policies.

Still giving 40x more £ tax cuts for wealthy.

Richest 5% get £3,500 on average with only £90 for poorest fifth of households.

Theyre not listening. They do not care.#ToryCostOfGreedCrisis https://t.co/bKKyM9TQpZ

— Kate Osborne MP (@KateOsborneMP) October 4, 2022

South and East Cleveland MP Simon Clarke, Secretary of State for Levelling Up, Housing and Communities tweeted: 

Great answer by @trussliz to @bbclaurak on the 45p rate. We should do what’s right to grow the economy and have the simplest, most competitive tax code we can. Rather obsess over the “optics”, let’s focus on policies which strengthen the country.

— Simon Clarke MP (@SimonClarkeMP) October 2, 2022

Despite the U-turn, Prime Minister Liz Truss said in an interview with the BBC that it may be something that is returned to in the future. She added: “I’m not contemplating that now.”

What do you think of the Government’s U-Turn on abolishing the 45p tax bracket? Have your say on Spark Sunderland.