British Finance Minister Jeremy Hunt, who has only been in office since Friday, said on Monday that almost all of the measures announced by his predecessor, Kwasi Kwarteng, almost four weeks ago would be reversed. This will refrain from taking on new debt to finance tax cuts. The basic tax rate of 20 percent will remain. The government’s most important goal is economic stability, he said.
Hunt also announced tax changes that would bring the state an additional £32 billion (€37 billion) a year. In addition, the finance minister said that the cap on energy prices for consumers should only apply until April. After that, possibilities should be sought to help the financially weakest households. Hunt plans to announce details of the plans before Parliament on Monday.
Prime Minister Liz Truss fired former Finance Minister Kwasi Kwarteng on Friday. He is considered a pawn sacrifice, brought in so that Truss can stay in office. Kwarteng had worked with Truss on the multi-billion dollar tax cuts and large spending to curb energy prices that had a devastating impact on the markets. The central bank felt compelled to intervene by buying bonds and thus reassuring investors.