At 0825 BST, the FTSE 100 was down 0.8% at 6,838.36, while sterling was off earlier highs but still 0.3% firmer against the dollar at 1.1200. Chancellor Kwasi Kwarteng has scrapped controversial plans to abolish the top rate of tax following days of market turmoil and increasingly vocal opposition across the Conservative party.
Kwarteng said earlier: “It is clear that the abolition of the 45p tax rate has become a distraction for our overriding mission to tackle the challenges facing our country.
“As a result, I’m announcing that 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.”
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