Cancellation of 45%of the highest income tax rate is the mini budget measure released by the Tras government on September 23, but shortly after the introduction, the financial market and political shock were caused.The Minister of Finance, Collten, announced the withdrawal yesterday.However, traders warned that this policy U was not enough to stop the continuous decline of the pound.

(London Composite Electric) British fiscal policy has a dramatic reversal. The tax reduction plan of the highest income person who has just introduced has just been introduced by the financial market and political shock.The Tras government was suffering from great setbacks less than a month, and the ruling reputation was impacted.

The Minister of Finance, Kwoten, issued a tweet on Monday (October 3), "We understand, we hear it." He announced that the government decided not to cancel the highest income tax rate for 45%of the highest income.

Cancellation of 45%of the maximum income tax rate is one of the mini budgets announced by the Tras government on September 23.Prime Minister Tras and Treasury Secretary Kwate hoped that through tax cuts and reducing supervision, the British economy has gone from the stagnation of growth over the years.Other measures for this growth plan include the cancellation of the blushing of the banker, the cancellation of the proposed company tax increase, and the restoration of the recently raised national insurance premiums.However, Tras and Kwate refused to exclude the possibility of cutting expenditure and welfare.

After the announcement of the cancellation of the above tax reduction plan was announced, the exchange rate of the British pound against the US dollar once rose 1%to $ 1.128, but then the increase was exhausted.Traders warn that this policy U is not enough to stop the continuous decline of the pound.

Kwandett said at the Conservative Annual Conference on Monday that the "soon" will announce how to reduce the proportion of British public debt in the medium period in the medium period."Today we face new challenges. When dealing with these challenges, we will act in a financial sustainable and responsible way. This is why we will announce a medium -term fiscal plan soon to explain our methods more comprehensively."

polls: more than half of the people believe that Tras and Kwate should resign

A member of the Rule of Conservative Party believes that the policy reversal is inevitable due to the damage of government reputation.Another member said: "Damage has been caused. We seem incompetent now."

The biggest opposition Labor Party even pointed out that the government's economic reputation has been damaged, and people's confidence in the country's economy has been damaged.

Britain is facing the most serious inflation crisis since generations. The government must reduce taxes on the rich, and at the same time may reduce expenditure and benefits, and they are immediately approved as unfair and caused a political storm.

Even senior members of the Conservative Party refused to confirm that they would support this plan in Congress. Voters even expressed dissatisfaction in polls. More than half of the interviewees believed that Trasse and Kwate had to resign.

The policy is that the bond yield decreases after stopping, but it is still high

Tellas and Kwo Teng originally planned to raise billions of dollars to fill the tax cuts. As a result, the pounds plummeted, British government bond yields soared, and shocked the global market.The Central Bank of England Bank of England had to enter the market to rescue the market with 65 billion pounds (about S $ 103.3 billion).

After

After the policy reversal, although the yield of British government bonds has declined, it is still at a high level, reflecting that investors are worried about the economic direction led by the Tellas administration.

However, Tellas and Kwen insisted that the overall growth plan is still correct, and we must strive to implement the plan.

When Kwoten was interviewed by the Broadcasting Corporation (BBC) on Monday, he acknowledged that the attention of all parties to the cancellation of the highest tax rate has caused "huge interference"."I am glad that we decided not to continue doing this, because it covered the focus of an excellent plan."

When the interviewer asked Kwatten if he considers his resignation, he said, "No."

Tellas spokesman said that the Prime Minister was full of confidence in Kavin and believed that the Congress approved other parts of the mini budget.

The political situation has been turbulent for six years, and four prime ministers have been changed.At present, a petition required to hold a national election immediately has received more than 400,000 joint support.According to the law, if the petition is signed by more than 100,000 people, Congress must consider debating relevant topics.