New UK finance minister Hunt reverses Truss's economic plan in dramatic U-turn

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Britain’s new finance minister Jeremy Hunt scrapped Prime Minister Liz Truss' mini-budget that had sparked market turmoil to win back investor confidence

Truss later sat, expressionless, in parliament as Hunt detailed why he needed to reverse nearly all the policies that had helped her become Conservative Party leader and premier less than six weeks ago."We are a country that funds our promises and pays our debts," Hunt told parliament, adding that what would follow was decisions of "eye-watering difficulty" to cut public spending.

Economists said the measures would not plug the gap in the public finances or undo the damage done by the government's radical policy, but they were a move in the right direction. After scrapping one of the tax cuts, Truss fired Kwarteng on Friday, saying she accepted her plans had gone "further and faster" than investors were expecting.

Asked at a daily briefing how the prime minister could retain any credibility after forsaking the policy that secured her election by party members, Truss's spokesman said she was listening to the public, her colleagues and to the markets.

 

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