After The Sun broke the exclusive of conference late last night, the Lobby’s just been informed that the government will now not be going ahead with the 45p rate abolition, with a u-turn expected to be announced within the next hour. Just yesterday the press were briefed that Kwasi was to tell conference “We must stay the course. I am confident our plan is the right one.”
This morning the course has not been stayed – it has been re-directed in another direction altogether. Kwasi’s statement:
From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy. However, it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country. As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened. This will allow us to focus on delivering the major parts of our growth package. First, our Energy Price Guarantee, which will support households and businesses with their energy bills. Second, cutting taxes to put money back in the pockets of 30 million hard-working people and grow our economy. Third, driving supply side reforms – including accelerating major infrastructure projects – to get Britain moving.
The move came after crisis talks yesterday between the PM and Chancellor; their hands forced by Tory MPs continuing to state on the record they couldn’t vote for the plans, despite an open warning from Jake Berry that they’d lose the whip. Gove was at the forefront of the rebellion…