United Kingdom

Pound and UK bonds rally after Jeremy Hunt scraps Truss tax cuts in bid to salvage credibility

Hunt’s decisions reverse almost all of the £45 billion in tax cuts and giveaways announced by Prime Minister Liz Truss in September

Jeremy Hunt signalled he is likely to make more severe spending cuts in the weeks ahead.

UK Chancellor of the Exchequer Jeremy Hunt has scrapped plans to cut taxes, reversing almost all of Prime Minister Liz Truss’s mini-budget that sparked market turmoil over recent weeks, and removed support for household energy bills in an effort to restore order to the UK public finances.

Hunt’s decisions reverse almost all of the £45 billion in tax cuts and giveaways announced by Truss in September, raising questions about whether she can survive in office. ...