THE GOVERNMENT has made a U-turn on its controversial tax cut for high earners hours after Central Devon Tory MP Mel Stride voiced his concern about how its tax cuts would affect those on modest incomes.

Chancellor Kwasi Kwarteng announced the U-turn on the 45p tax rate on those earning more than £150,000 on Monday. However, Mr Strike told Sky News there was still work to be done on the Government’s tax cutting plans, as the U-turn to maintain the 45p rate on high earners would only claw back £2 billion out of the Government’s proposed £45 billion of tax cuts. ‘I think the Government is in a very very difficult position because what it has come up with is a very high level of tax cuts without coming up with plans about how to fund them,’ he said. As chair of the House of Commons Treasury Select Committee, Mr Stride has asked for the Office for Budget Responsibility’s report on the Government’s plans to be released to the committee to assess their credibility.

The next hot potato is whether benefits should rise by the same percentage as rocketing prices, which the Government is against. ‘I think this could be one where the Government could have to think again,’ said Mr Stride.