Liz Truss’s first ‘mini-Budget’ as prime minister has been ripped to shreds by the new chancellor.
Jeremy Hunt issued an emergency statement today to rush forward measures that had been due to be announced on October 31st in what is known as the medium-term fiscal plan.
He will fast-track billions of pounds of savings in an attempt to get the public finances back on track and stabilise financial markets after weeks of turmoil in the wake of former chancellor Kwasi Kwarteng’s mini-budget.
The Chancellor will then address MPs in a statement to the House of Commons later in the afternoon.
He and Prime Minister Liz Truss held talks over the weekend on what the Treasury described as measures “to ensure sustainable public finances underpin economic growth”.
Dramatic scaling back
Hunt dramatically scaled back support for household energy bills and ditched tax cuts promised by his predecessor Kwarteng in a bid to restore stability following weeks of turmoil on the financial markets.
The chancellor said the energy price guarantee – which had been due to cap prices for two years – will end in April after which time the Government will look to target help on those most in need.
He said that he is abandoning plans to cut the basic rate of tax by 1p – which had been due to be brought forward to April – and that it would remain at 20p in the pound until the country can afford to reduce it.
In a televised statement, the Chancellor – who only took office on Friday – warned of more “tough” decisions to come.
“Governments cannot eliminate volatility in markets but they can play their part and we will do so,” he said.