Top rate tax cut was 'against any notion of fairness', says Mayor Street

The West Midlands Mayor welcomed the Prime Minister's U-turn on a move that would have seen the 45p incomes tax rate for the highest earners abolished.

He said Liz Truss had made a "brave" decision to row back on the move, which had been widely criticised as unfair at time of soaring living costs.

Mr Street admitted last week that he would not of cut the top rate of tax, although he said he understood what the Government was attempting to do.

Reacting to the announcement that the plan had now been scrapped, Mr Street said: "I have been on the record as an opponent of the plan to cut the top rate of income tax so I welcome the Chancellor changing course.

"During these tough times for households right across the country, cutting tax for the most well off would have gone against any reasonable notion of fairness.

"I'm pleased the Government has been brave enough to think again."

Asked about the measure in an interview last week, Mr Street said: "If it was me, I wouldn't have done that, but I understand what the Government is attempting to do."

The proposal, which was announced as part of Chancellor Kwasi Kwarteng's mini-budget, would have seen the rate paid by people earning over £150,000-a-year scrapped.

Mr Kwarteng had argued that it would boost growth by attracting top earners, but now admits the policy had become a "distraction".

Meanwhile Mr Street has rejected claims that other tax cuts included in the mini-budget would be funded by cuts to public spending.

He said: "They have not yet said they are definitely going to make spending cuts. They are saying they are reviewing public spending and every government says that because they have to balance the books.

"Nothing has come through. We're actually committed at the moment to the huge increases in public spending that Boris Johnson's government brought about."