Government U-turns on plans to scrap top tax rate The Government has U-turned on controversial plans to scrap the 45p rate of income tax for higher earners, with Chancellor Kwasi Kwarteng saying: “We listened to people, I get it.” Saying that the proposals announced as part of his mini-Budget had become "a massive distraction," he told BBC Breakfast the proposal was "drowning out a strong package", including support for energy bills, and cuts to the basic rate of income tax and corporation tax. Asked whether his previous comment that there was "more to come" on tax cuts still stood, Mr Kwarteng said there would be no tax cuts ahead of the next Budget in the spring. Plans to scrap the top rate of tax had drawn opposition from the markets, other parties and several Conservative MPs. Following news of the U-turn, former Cabinet minister Michael Gove said he will now back the Government's mini-Budget in its current form. He said debate over the 45p tax increase "obscured" the fact "there were lots of good things ... and some potentially interesting things" in the plans set out by the Prime Minister and Chancellor.