THE government's sudden U-turn on scrapping the top 45p in the pound tax rate came too late to prevent 'needless harm to the economy' Blackburn Labour MP Kate Hollern has said.
She said the initial proposal announced in the mini-budget was 'indefensible'.
Mrs Hollern was speaking after Chancellor Kwasi Kwarteng scrapped the 45p rate, paid by people earning more than £150,000 a year, this morning.
He said the proposal was 'drowning out a strong package' including support for energy bills, and cuts to the basic rate of income tax and corporation tax.
Asked whether he owed people an apology, he said: "We've listened to people. And yeah, there is humility and contrition in that. And I'm happy to own it."
East Lancashire Conservative MPs defended Mr Kwarteng and said that the change of heart showed that Prime Minster Liz Truss's new administration was a 'listening' government.
Mrs Hollern said: “The Prime Minister has finally buckled to the political pressure.
"This was a misguided and unfunded tax cut for the richest one per cent and it has already done needless harm to the economy.
"It was an indefensible decision in the middle of a cost-of-living crisis.
"The chancellor has dropped this policy to save face, but this does nothing to help East Lancashire families who are now paying higher mortgages, higher energy costs and higher prices.
“The chancellor needs to provide proper support for the hardest pressed families in places like Blackburn instead of focussing on slashing taxes for his mates and trying to drag the country into a new era of austerity."
Hyndburn Conservative MP Sara Britcliffe said: "This was the right thing to do.
"I am glad the government has listened and acted.
"I think the Chancellor can keep his job.
"I think what we have seen is that he has listened and he has acted on energy bills helping households through this crisis."
Conservative Party chairman and Rossendale and Darwen MP Jake Berry said: "We have got a great, great package.
"The issue of the 45p was a very, very small part of that.
"This shows that the government has listened to its MPs and the public and changed its mind."
Housing minister and Pendle Tory MP Andrew Stephenson said: "I think the announcement shows that the chancellor and the government is listening, which is a good thing.
"The government's plan for growth is the right approach and the 45p tax change had become a distraction from the many positive announcements. "
Asked if he had considered resigning, Mr Kwarteng said: "Not at all."
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