More concessions needed to fix UK’s reputation in markets, Kwarteng is told

After tax U-turn, economists urge chancellor to backtrack on other controversial plans in mini-budget

• Kwasi Kwarteng admits tax plans caused a little turbulence'

Kwasi Kwarteng has been warned that further concessions on his mini-budget will be required beyond his U-turn on the 45p income tax rate if the government is to fix its battered reputation in global markets.

City investors welcomed the chancellor abandoning his plan to scrap the additional rate of income tax charged on higher earners, saying it showed a willingness to listen to concerns over the sustainability of the public finances after a week of denial.