THE pound has jumped against the dollar after the government announced a u-turn on tax cuts.
Sterling hit $1.12 in early trading in Europe following the announcement.
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A swathe of tax cuts revealed in the mini Budget sent markets into turmoil last week and the pound plunged to a historic low.
The government will now keep the 45p top rate of tax.
Chancellor Kwasi Kwarteng said “We get it, and we have listened.”
The Sun last night exclusively revealed the PM and Chancellor were planning to ditch the tax – with Mr Kwarteng this morning telling the BBC: “What was clear, talking to MPs, voters, constituents, that the 45p rate was becoming a huge distraction on a very strong plan.”
The pound fell to $1.03 after the plans were first announced – the lowest since 1971 when decimalisation took place.
