The mini-budget announced the biggest tax cuts in 50 years and sent financial markets into chaos
Prime Minister Liz Truss is due to ditch plans to abolish the 45p rate of tax for higher earners, media reports suggested on Monday.
The BBC said, shortly before 7am, that Chancellor Kwasi Kwarteng was due to make a statement in the next hour.
Sky News also suggested a statement was imminent.
The news comes days after his government’s shock mini-budget announced the biggest tax cuts in 50 years, sending financial markets into chaos and plunging the pound to a record low against the dollar.
The U-turn comes after several Conservative MPs voiced their opposition to the removal of the top tax rate.
Government sources would not comment on the U-Turn to the BBC, but former cabinet minister Grant Shapps had warned Liz Truss was likely to lose a Commons vote on the plan.
The 45p income tax cut policy was one of a series that prompted turmoil in the markets over the past week, with the pound reaching record lows against the dollar.
On Sunday, the Conservative party said any Tory MP who voted against the mini-budget would be suspended from the party.
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