The daily business briefing: October 3, 2022

U.K. drops plan to cut taxes for high earners, Tesla shares fall after deliveries fall short of expectations, and more

Liz Truss
(Image credit: Paul Ellis - WPA Pool/Getty Images)

1. U.K. abandons Truss' tax cut on high earners after uproar

The British government has dropped Prime Minister Liz Truss' controversial plan to cut the country's highest income tax rate, finance minister Kwasi Kwarteng confirmed Monday. Truss proposed slashing taxes on high earners just 10 days ago, saying it would stimulate growth. But the plan sparked a growing rebellion in her ruling Conservative Party and rattled global financial markets. "We listened to people, I get it," Kwarteng told BBC News before announcing the reversal. Kwarteng said the uproar over the policy had become "a massive distraction" that was "drowning out a strong package" that includes support for energy bills and cuts to basic income and corporate tax rates. Britain's currency rose to touch a one-week high after the BBC first reported the reversal.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us