U.K. Scraps Tax Cuts For Wealthy That Sparked Market Turmoil

The UK government's plan to cut taxes for the wealthy, including removing the 45% income tax rate for high earners, faced significant backlash and market turmoil. Prime Minister Liz Truss initially defended the policy, but reversed it due to criticism and economic instability. The reversal affects only a small portion of the announced tax cuts. Despite the pressure, Truss and her finance minister remain firm in their positions, believing tax cuts will spur economic growth. Analysts, however, express concerns about market impacts and rising interest rates.

What impact did the tax cuts have on ordinary people during the cost of living crisis?

What does the government believe about the future of their tax cut policies?