The British government has announced the cancellation of almost all financial measures announced three weeks ago

The British government has announced the cancellation of almost all financial measures announced three weeks ago
New Chancellor of the Exchequer Jeremy Hunt leaves 10 Downing Street in London, the seat of the British government (Reuters/Henry Nichols)

Britain’s new finance minister, Jeremy Hunt, announced on Monday the scrapping of “nearly all tax measures” introduced three weeks ago. by the county government Les Trusswhich plunged the financial markets into chaos.

Hunt, who was urgently appointed Friday, stressed the need to restore “stability” and specified, among his statements, that Help for families to finally pay their energy bills will be limited to six months Instead of the two years initially planned.

In a televised speech, Hunt also announced that it has canceled the planned April 20 to 19% reduction in the minimum income tax, In order to reduce public debt and calm markets.

Hunt took office last Friday, replacing Quasi Quartinglaunched by Truss, after its introduction on September 23 a The financial plan without details of how to reduce debt Sow chaos in the financial markets.

Today, the new minister announced that the radical changes in that plan amount to about 32 billion pounds (37 billion euros) annually, They intend to “ensure financial stability and give confidence in the government’s commitment to fiscal discipline”.

The The pound rose and the interest on British public debt fell after Hunt unraveled Truss’ “growth plan” with his statementwhose The political future now hangs in the balance by the opposition inside and outside his party.

Conservative Prime Minister Liz Truss.  His political future is in the balance (Daniel Leal/Pool via REUTERS/file)
Conservative Prime Minister Liz Truss. His political future is in the balance (Daniel Leal/Pool via REUTERS/file)

Announcing the Karting rally on Friday, The Conservative Party leader has reversed her decision to freeze corporate tax, He pointed out that In April it will rise from 19 to 25%except for small businesses, as arranged by the previous government.

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early October Truss also eliminated the planned cut from 45 to 40% of income tax for the highest-income sectors.After receiving a lot of criticism in light of the high rates of inflation and high interest rates.

Select Hunt today it It will also cancel the planned 1.25 percentage point reduction in tax on dividends As well as purchases exempt from VAT for foreign visitors.

Minister too Pre-announced defrostingFor a period of one year from 1 February dThe tax on alcohol.

From the previous plan, only Freezing social security contributions and reducing home purchase taxbecause the corresponding legislation has already been approved.

The new economy minister who met last night Andrew Baileythe governor of the central bank, at 14:30 GMT in the House of Commons to give more details on the new fiscal strategy.

The full plan, accompanied by an official forecast for growth and deficit, will be revealed on October 31.

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