The UK will not abolish the maximum income tax rate

The UK authorities have decided to abandon plans to abolish the maximum income tax rate of 45% applied to annual income over $ 150,000 pounds.

Previously, it was assumed that all brits earning more than 50,271 pounds would pay income tax at a flat rate of 40%.

The Bank of England announced the abolition of the maximum income tax rate back in September as part of a large-scale tax reduction program. It is worth noting that this program has attracted criticism from many experts due to the sharp increase in the state budget deficit and led to a rise in the yield of government bonds. As a result, to mitigate the consequences, the British regulator had to suspend the planned start of the sale of government bonds and instead start buying debt securities again.

Last weekend, on October 2, Prime Minister Liz Truss admitted that the government should have better prepared financial markets for tax cuts and increased government borrowing. Despite this, Truss stressed that, in general, the decision to increase borrowing was correct.

According to the British Debt Management Office (DBO), the state budget's borrowing needs in the current financial year will amount to 234.1 billion pounds, which is almost one and a half times more than previously expected.