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 government has U-turned on plans to scrap the 45p rate of income tax for higher earners.

Chancellor Kwasi Kwarteng told the BBC the proposals, announced just 10 days ago, had become "a massive distraction on what was a strong package".

"We just talked to people, we listened to people, I get it," he added.

The decision, which marks a humiliating climbdown for Prime Minister Liz Truss, comes after several Tory MPs criticised the plan.

On Sunday, Ms Truss had said she was committed to the policy.

Liz Truss has said a new trade deal with the United States is unlikely in the "short to medium term".

The prime minister is in New York for the UN General Assembly, where she will meet US President Joe Biden.

The UK government had previously promised a post-Brexit trad deal with the US by 2022.

Labour said the lack of a trade deal with the US "is costing billions in lost potential trade opportunities and holding back growth".

The so-called Free Speech Union (FSU) has called for prime minister Liz Truss to ban family-friendly drag in a social media post.

The self-proclaimed “organisation dedicated to upholding free speech” has, ironically, urged Truss to restrict events it views as “political indoctrination” at school in a tweet posted on Saturday (10 September).

The post also attached a Linkedin blog post in which members of the FSU described family-friendly drag as a “trojan horse” for what it calls “radical gender theory”.

“Liz Truss will become Britain's next prime minister after winning a leadership race for the governing Conservative Party on Monday, vowing to press ahead with promised tax cuts and action to tackle a deepening energy and cost of living crisis.” (Reuters)

The right is optimistic that Truss will embrace conservative policies and push back against China.

The left is skeptical that Truss will effectively manage Britain’s current crisis.

Liz Truss has promised to deal with surging energy costs and to cut taxes, after she won the Tory leadership contest to become the next PM.

Her plan, set to be announced on Thursday, is likely to include a freeze on energy bills - though precisely how it would work is still unclear.

Ms Truss will be formally appointed by the Queen at Balmoral Castle later, after a final speech by Boris Johnson.

The 47-year-old, the UK's third woman PM, will then appoint her cabinet.

Liz Truss has become the UK’s new prime minister after meeting the Queen at Balmoral, where she was asked to form a government after the resignation of Boris Johnson.

Truss, 47, is the UK’s 56th prime minister and its third female leader. She is expected to return immediately to Downing Street and will give an address to the nation at about 4pm, before beginning to appoint her cabinet.

Liz Truss is expected to begin announcing her Cabinet on Tuesday after being elected leader of the Conservative Party on Monday.

Following her victory over Rishi Sunak, the new party leader will fly to Balmoral where she will be formally invited by the Queen to form a government.

She is set to confirm appointments to her top team later in the day, but some ministers have already indicated that they will step down.

Liz Truss will be Britain’s next prime minister after she was elected leader of the ruling Conservative Party on Monday, ending a race to succeed the scandal-tarnished Boris Johnson.

Truss, 47, has served as foreign secretary and was the clear front-runner for the job. She clinched victory by appealing to the right-wing party faithful as a tax-cutting, anti-"woke" candidate who would take a hard line on post-Brexit dealings with the European Union.