- Summary - Truss had defended policy, markets worried about cost - Finance minister Kwarteng now says it was distraction - Kwarteng to bring forward debt-cutting plan - Cut in highest tax rate was small part of overall plan - Lawmakers express alarm over government judgement BIRMINGHAM, England, Oct 3 (Reuters) - British Prime Minister Liz Truss was forced on Monday into a humiliating U-turn after less than a month in power, reversing a cut to the highest rate of income tax that helped spark turmoil in financial markets and a rebellion in her party.Finance minister Kwasi Kwarteng said the decision was taken with "humility and contrition", after some lawmakers from the ruling Conservative Party reacted with fury to suggestions that public and welfare spending could be cut to fund tax cuts for the richest.Truss - elected as prime minister by party members but not the broader public - is seeking to jolt the economy out of a decade of stagnant growth with a 1980s-style plan to cut taxes and regulation, all funded by vast government borrowing.The Financial Times said Kwarteng was expected to accelerate publication to later this month, adding that his statement would set out a five-year plan to cut debt, including a squeeze on public spending.HISTORIC LOSSES While the pound has recovered from its depths of last week, government bonds have mostly failed to recoup the historic losses incurred from the "mini-budget" - with the exception of long-dated debt which is subject to Bank of England support."