The new British finance minister, Jeremy Hunt, has almost completely withdrawn the economic stimulus and tax cut package announced by the British government just three weeks ago. As Hunt said in a televised address Monday, "almost all" tax plans will be reversed. His ministry also wants to review whether a costly freeze on gas and electricity prices can be maintained beyond this winter.
After the review, it should be determined how the government will subsidize the massively increased bills for electricity and gas “beyond April next year”, Hunt said when presenting the key points of his new budget. This should be complete by October 31st.
Conservative Prime Minister Liz Truss fired former Finance Minister Kwasi Kwarteng on Friday and replaced him with ex-Foreign Minister Hunt. A tax cut package announced by Kwarteng three weeks ago had caused unrest on the financial markets due to the threat of high government debt, causing interest rates on British government bonds to skyrocket and causing the pound to collapse.