Prime Minister Liz Truss apologised yesterday for her controversial mini-budget that crashed the country’s currency, rattled financial markets, and led to the sacking of the then Chancellor, Kwasi Kawrteng.
Jeremy Hunt, former foreign and health secretary, has succeeded Kwasi Kwarteng as Chancellor. He is the UK's fourth Chancellor so far this year and faces huge challenges with prices soaring and hikes in interest rates.
Nearly all the original tax cuts announced in the government's mini-budget are being reversed. In a statement on Monday morning, Hunt said the 20p basic tax rate would remain indefinitely and reversed a swathe of other tax measures, including changes to dividend taxes, a VAT-free shopping scheme, and a freeze on some alcohol duties. The stunning reversal would raise £32 billion.
Government bonds, currency, and shares rallied on Monday off the back of the news.