Truss brought Hunt on Friday after she fired his predecessor, Kwasi Kwarteng. Truss and Kwarteng’s plans for a £45 billion ($50 billion) tax cut – including income tax relief for the top earners – without an accompanying review of how the government will pay for them sent the pound plunging to a record low against the US dollar and government borrowing costs skyrocketing. The Bank of England was forced to buy government bonds to prevent the financial crisis from spreading to the wider economy.
The government has since abandoned parts of the tax cut plan and announced it will issue its mid-term financial report on October 31. But the market remained volatile, and Hunt decided he had to give it. issued a statement to calm the situation sooner.
The Treasury Department said he would issue a public statement, followed by a statement before the House of Commons, on Monday afternoon. Hunt spent the weekend talking about the crisis with Truss, and also met with Bank of England Governor Andrew Bailey and the head of the government’s Debt Management Office.
The financial debacle has turned Truss into a limp prime minister and Conservative lawmakers are agonizing over whether to try to oust her. She took office just six weeks ago after winning the party election to replace Prime Minister Boris Johnson. He was forced out in July after mass ethics scandals hit his administration.