Prime Minister Liz Truss is to ditch plans to abolish the 45p rate of tax for higher earners, Sky News understands.
In a huge reversal on the controversial policy announced in the mini-budget earlier this month, the government is set to make the announcement soon.
The tax cut would have saved people earning £150,000 a year around £10,000.
The measure was due to be voted on by MPs and yesterday, the Conservative party said any Tory MP who voted against the mini-budget would have the whip removed (suspended from the Tory party).
However, many senior MPs spoke out against the plan – including former cabinet ministers Michael Gove and Grant Shapps.