British Chancellor of the Exchequer Jeremy Hunt has reversed most of an economic package announced by the government just weeks ago, saying the country needed to rebuild investor confidence.
Hunt said on Monday he was scrapping “almost all” the tax cuts announced last month and signalled public spending cuts were on the way.
Hunt said a planned 1 percentage point cut to the basic rate of income tax that had been due to take effect next year will not happen.
He also scaled back a cap on energy prices designed to help households pay their bills. It will now be reviewed in April rather than lasting two years.
“I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth,” Hunt said in a televised clip. “But growth requires confidence and stability, and the United Kingdom will always pay its way.”
Hunt was appointed on Friday after Prime Minister Liz Truss fired Kwasi Kwarteng, who spent less than six weeks in the Treasury job.