Plans to scrap the 45p rate of Income Tax have been reversed, UK Chancellor Kwasi Kwarteng confirmed this morning.

In a statement, he said the proposal - announced just 10 days ago in the mini-Budget - had "become a distraction".

The U-turn, which marks a humiliating climbdown for Prime Minister Liz Truss, comes after an increasing number of Tory MPs had voiced their opposition to the plan.

Ex-cabinet minister Grant Shapps had warned the Prime Minister would lose a Commons vote on the proposal.

And former levelling-up secretary Mr Gove said he was "profoundly concerned" about a decision to borrow to fund tax cuts.

The plan to scrap the 45p rate, paid by people earning over £150,000 a year, was widely criticised as unfair at time of rising living costs.

But, only yesterday, Ms Truss told the BBC she was absolutely committed to it as part of a package to make the tax system "simpler" and boost growth.

Remarkable opposition

However, the planned measure saw remarkable opposition from the markets, opposition parties and a growing number of Tory MPs.

Ther BBC says that, increasingly, it seemed Ms Truss did not have the numbers in Parliament to get it through.

Yesterday, Mr Gove signalled he would not vote to scrap the 45p rate, saying it displayed the "wrong values" and that Ms Truss did not have a mandate for the move.

He said he was "profoundly concerned" about the decision to borrow to fund tax cuts.

Mr Gove believed there were "two major" problems with the prime minister's plans.

"The first is the sheer risk of using borrowed money to fund tax cuts - that's not Conservative," he said.

People are suffering

The second, he argued, was to cut the top rate of Income Tax and scrap the cap on bankers' bonuses "at a time when people are suffering".

Asked if Ms Truss would be prime minister this time next year, he said she would but added: "There needs to be a course correction."

Mr Gove was also asked if Ms Truss - who won the Tory leadership contest with a majority among the 170,000 Conservative members - had a mandate for her tax changes.

He said she did for changes to National Insurance and Corporation Tax because she had campaigned for it during the leadership contest.

"What was not discussed was the prospect of Income Tax cuts, particularly Income Tax cuts for the very wealthiest," added Mr Gove.

On Sunday, Ms Truss said that cutting the 45p rate of tax was not discussed at Cabinet and that the decision to include it in the mini-Budget had been taken by Mr Kwarteng.

Backbench rebels campaign

Backbench rebels had stepped up their campaign to force the Prime Minister into an about turn over her Government's mini-Budget.

More than 13 MPs had publicly criticised the policy.

Last night, a leading rebel said as many as 70 Tory MPs were considering voting against the move - and that they were pushing Ms Truss to delay the scrapping of the 45p rate for a year.

George Osborne, the former chancellor, believed it was "touch and go" whether Mr Kwarteng could survive in his job.

Just yesterday, Ms Truss told the BBC that, although she was sticking with her plans, she admitted they could have been communicated better.

"I do stand by the package we announced and I stand by the fact we announced it quickly, because we had to act," she said.

"But I do accept we should have laid the ground better. I have learned from that, and I will make sure that in future we do a better job of laying the ground."

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