WEB DESK
Britain’s new finance minister Jeremy Hunt has reversed most of an economic package announced by the government just weeks ago, including a planned cut to income tax. In a televised address, Chancellor of the Exchequer Hunt said he is scrapping almost all of new Prime Minister Liz Truss’ tax cuts, along with her flagship energy policy and her promise that there will be no public spending cuts.
Former foreign and health minister Hunt was appointed on Friday after Prime Minister Truss sacked Kwasi Kwarteng, who spent less than six weeks in the job.
A two-year energy support scheme for households and businesses, expected to cost more than 100 billion pounds, will now end in April and be replaced by a more targeted scheme that will cost the taxpayer significantly less than planned.
Prime Minister Truss and Kwarteng jointly came up with a 23rd September announcement of 45 billion pounds in unfunded tax cuts that spooked financial markets. It also sent the pound to record lows and forced the Bank of England to take emergency action.
Hunt spent the weekend in crisis talks with Truss, and also met with Bank of England Governor Andrew Bailey and the head of the government’s Debt Management Office.
Hunt’s moves are aimed at restoring the government’s credibility for sound fiscal policy after Truss and Kwarteng rushed out a plan for tax cuts without detailing how they would pay for them.
Later, the finance minister adressed the House of Commons and took questions from MPs on economic issues.