British government denies Truss tax cuts reversals, but chancellor says "lets see"

Oct. 13 (UPI) -- The British government is denying media reports that it is in talks on a policy U-turn on cutting corporate tax rates in Chancellor Kwasi Kwarteng's mini-budget.

As economic fallout continues from Prime Minister Liz Truss' huge tax cut, Kawarteng said the position hasn't changed, but said, "let's see" when asked about a potential reversal.

Media reports Thursday said the government is in talks to scrap some of Truss' fiscal plan - including corporate tax and dividend tax cuts - in the chancellor's mini-budget.

According to BBC News, Chancellor Kwarteng said, "Our position hasn't changed." But under questioning he also said, "let's see" when asked about the potential U-turn on tax cuts, according to The Guardian.

He also refused to rule out changing other aspects of the Truss government's £43 billion tax cut package.

According to Sky News, the prime minister's official spokesman confirmed the government's fiscal policy hasn't changed, saying, "Yes, as I said to a number of questions on this yesterday -- and the position has not changed from what I set out to you all then."

The British government just last week revealed a plan to eliminate the top 45% taxation rate on earnings above $168,000 a year as Truss after public backlash against it.

The British pound plunged against the dollar and there was a bond sell-off when Truss first announced the massive tax cuts.

But on Thursday, the pound rose 1.8% against the dollar after multiple, media reports said the government was in talks to do away with parts of the unfunded tax cuts.

On Wednesday, Truss said during prime minister's questions in Parliament that she's not willing to slash public spending amid the tax cuts.

The Institute of Fiscal Studies said earlier this month that the British government would need to find $69 billion in some combination of spending cuts or tax increases to avoid increasing the British public debt.