Liz Truss hints Government may still axe top 45p rate of tax in future

Liz Truss has hinted she may still look to axe the top 45p rate of tax in future, insisting there was “absolutely no shame” in U-turning on the policy.

The Prime Minister said she “would like to see” the highest bracket of income tax lowered, but acknowledged doing so “wasn’t a priority”.

In a series of interviews with broadcasters on Tuesday morning she defended her volte face over the plan, which sparked a revolt among Tory MPs.

She insisted it was “a relatively minor part of our growth package” compared to the wider 1p income tax cut and the £60 billion energy price cap.

Asked if she still thought axing the 45p tariff on those who earn over £150,000 was a good idea, she replied: “I would like to see the higher rate lower.”

“I want us to be a competitive country, but I have listened to feedback. I want to take people with me,” she told the BBC.

“Yes, we are going to have to make tough decisions. Yes, we're going into a tough winter. Yes, times are difficult.”

Ms Truss said the row over the 45p rate had become a “distraction from the major policies” contained in the mini-budget including the energy price cap.

“I listened to what people had to say,  both my parliamentary colleagues but also to the public, and we have changed our policy as a result,” she said.

“I felt it was wrong to allow that distraction to continue from the major parts of our package because that is not a reflection of what my priorities are.”

'There’s absolutely no shame in a leader listening to people'

Ms Truss insisted she is “not contemplating” reviving the plan “now” and said tha “the 45p wasn’t a priority policy” for her Government.

“I think there’s absolutely no shame in a leader listening to people and responding, and that’s the kind of person I am,” she separately told Sky News.

Ms Truss was also grilled on her views on immigration and over perceptions she will take a more liberal approach to help fuel growth.

The Prime Minister appeared to harden her position, insisting that she is “not relaxed about numbers” of new arrivals despite workforce shortages.

“We need to make sure we control immigration. I’ve always been very clear we control our own borders, we should make those decisions,” she told 5 News.

“I don’t want to see numbers going up. What I want to see is the right people coming in with the right skills that can contribute to Britain.”

It comes as Ms Truss faces a battle with Tory MPs and members of her own top team over her failure to commit to uprating benefits in line with inflation.

Three Cabinet ministers broke ranks on Tuesday with comments that will pile pressure on the Prime Minister to change course once more.

Penny Mordaunt, the Leader of the Commons, told Times Radio she had “always supported” inflation matching rises and “it makes sense to do so” once more.

Robert Buckland, the Welsh Secretary, added he has “always had the back of people in need” and “the safety net is an important part of what a one nation Conservative is all about”.

Brandon Lewis, the Justice Secretary, said people shouldn’t be “too concerned” as the Government has a “track record of doing everything we can to protect the most vulnerable”.