The pound headed back toward $1.13 on confirmation that the government will drop plans to abolish the UK’s top tax rate, in a major U-turn from the government on a key part of its Budget proposals.
Chancellor Kwasi Kwarteng called the 45p tax rate “a distraction”.
The FTSE 100 was expected to fall in opening trade according to spread betting group IG, although by a narrower margin by continental European bourses.
