Kwarteng announced the U-turn on Twitter this morning, saying: ‘We are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.

‘It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.

'This will allow us to focus on delivering the major parts of our growth package', including the Energy Price Guarantee, 'to support households and businesses with their energy bills'. 

The plan was announced in the tax-slashing mini-budget last Friday, which included scrapping the 45p tax rate, which would cut tax by 5% to 40% for those earning over £150,000 a year. 

However, the plan was criticised as unfair amid the current cost-of-living crisis, and required a vote before it could be approved.