UK Finance Minister Jeremy Hunt scraps almost all government tax cut plans

British finance minister Jeremy Hunt said on Monday that the government will be reversing nearly all the tax cuts announced in the mini-budget. The measures which were introduced by former finance minister Kwasi Kwarteng were met with criticism and uproar from both political and public circles.

Among the measures which will be reversed by the British government, the most important ones are the reliefs on stamp duty paid on house purchases and the control on the rise of the National Insurance.

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The other major measure which may face the axe in the near future is the lowering of the basic rate of income tax which Hunt explained will "indefinitely until economic circumstances allow for it to be cut".

Hunt explained that the scrapping of the measures taken by the Liz Truss government is expected to bring “confidence and stability" while adding that the economy "will always pay its way."

In the aftermath of the mini-budget, the pound fell to the lowest ever against the United States dollar and the tax cuts were criticised by several institutions including the International Monetary Fund.

Hunt also announced that the “energy price guarantee” to both businesses and households will be reconsidered as it is expected to cost the government around $67 million in the next few months.

“There will be more difficult decisions I’m afraid on tax and spending,” Hunt told the reporters.

In response to the U-turn, the pound also found its footing on Monday as it jumped by more than one percent. It rose by 1.1 percent to $1.1293 just ahead of Hunt’s crucial announcement.