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Premier Gordon Campbell during a press conference where he announced that he was resigning, in Vancouver November 3, 2010.

John Lehmann/The Globe and Mail)/John Lehmann/The Globe and Mail

The Liberals are rescinding the income-tax cuts that Premier Gordon Campbell announced just three weeks ago, giving the premier's successor the latitude to chart a new political course.

Mr. Campbell announced the tax cut during a televised speech that attempted to explain the government's decision to introduce the HST.

But the speech and the tax cut failed to prop up the premier's flagging popularity, and he announced two weeks ago that he will step down as leader.

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Now Mr. Campbell says the cabinet has decided to suspend the planned tax cut, deciding that in this time of transition, it is important not to make any changes that would limit the ability to set priorities and set the agenda of government.

Both the 2011 Feb. 14 Throne Speech and the budget the following day will be mere placeholders, with the former limited to outlining the transition period to the swearing-in of a new premier - expected shortly after the Feb. 26 party leadership vote - and the latter a "status quo budget" that will have no new measures. In an interview, Mr. Campbell said all of those moves were his decision.

The 15-per-cent personal income tax rate cut, was to have taken effect Jan. 1, 2011 and would have applied to earnings up to $72,293.

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