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The British government has scrapped plans of cutting taxes on the wealthy, a move that prompted turmoil in financial markets and led to record lows for the pound.
Treasury chief Kwasi Kwarteng said Monday he would no longer pursue plans to eliminate the top 45% rate of income tax paid on earnings above 150,000 pounds, or $167,000 a year.
"We get it, and we have listened," he said in a statement, adding that "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."
The reversal comes after a number of lawmakers from the governing Conservative Party turned on government tax plans revealed 10 days ago, and just hours after the Conservatives released advance extracts of a speech Kwarteng is scheduled to deliver later on Monday, when he was expected to say, "We must stay the course. I am confident our plan is the right one."