Britain’s new Finance Secretary Jeremy Hunt will announce tax and spending measures later on Monday, laying out part of his financial plan in an attempt to calm markets after the debt-filled budget last month.
Hunt – who was parachuted into the job on Friday to replace the ousted Kwasi Kwarteng – will “issue a statement setting out measures from the medium-term fiscal plan” scheduled for May 31. 10, the Ministry of Finance said in a statement.
The measures “will support fiscal sustainability”, the statement said, after last month’s notoriously small budget sent bond yields skyrocketing and the pound crashed on mounting debt concerns. .
Monday’s news sent the pound climbing against the dollar while the UK 30-year bond yield rose to 4.78%.
Prime Minister Liz Truss fired Kwarteng after a debt-ridden budget sparked market turmoil, fueling speculation about her political future just over a month after taking office.
After his shock appointment, Hunt kicked off his run on Saturday with a warning of an impending tax hike as he dramatically reversed right-wing Truss’ radical economic reform agenda.
Budget outrage, including massive tax cuts and a costly freeze in domestic energy prices, is believed to have sparked a plot to oust Truss from Downing Street.
The Chancellor of Exchequer Hunt met the governor of the Bank of England and the head of the Office of Debt Management to discuss his plans late Sunday, according to a statement on Monday.
Due to the exhausted budget, the BoE was forced to jump into the market due to its emergency bond-buying policy.
Tax cuts are at the heart of the no-star budget.
But they were financed through billions of dollars in extra borrowing, causing panic in financial markets over the prospect of higher inflation, plunging British households into a cost-of-living crisis.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)