New U.K. finance minister Hunt scraps tax cuts, reins in energy support

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LONDON — New finance minister Jeremy Hunt scrapped Prime Minister Liz Truss’s economic plan and scaled back her vast energy subsidy on Monday, launching one of…

“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.”Article content

Truss said she was now charting a new course for growth, but one that would protect stability. “We have taken action to chart a new course for growth that supports and delivers for people across the United Kingdom,” she said on Twitter.Article contentThe latest crisis to hit the British shores started on Sept. 23, when new prime minister Truss and her-then finance minister Kwasi Kwarteng announced 45 billion pounds of unfunded tax cuts to snap the economy out of years of stagnation.

Adding to the pressure, the Bank stuck to its schedule of ending its support on Friday, meaning Hunt had been racing to reverse policies and find spending cuts to appease the markets and prevent borrowing costs from rising further on Monday morning.Article content He said she was listening to the public, her colleagues and to the advice of the markets. “She is making the necessary difficult decisions to change our approach so we can provide the economic stability and maintain that stability of leadership which is important as well,” he said.Article content

 

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