The British government reconsiders its budget project

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The UK government looks back on his budget project

Jeremy Hunt was hastily appointed finance minister on Friday by Prime Minister Liz Truss, who has been in turmoil since presenting a mini-budget.

Britain's new finance minister, Jeremy Hunt, announced on Monday that the government would reverse almost all of the tax measures announced on September 23 by his predecessor as part of the plan to boost Britain's economic growth.

According to Jeremy Hunt, the new tax measures will result in additional revenue of 32 billion pounds (49.5 billion Canadian dollars). According to the Sunday Times, government plans on the verge of being scrapped have left a $72 billion hole in public finances.

The government also intends to limit the aid granted for energy, with a price cap that would end in April 2023, and no longer for two years. Beyond this date, the government will look for other solutions to help the poorest households, he said.

I remain extremely confident about the long-term economic prospects for the UK to achieve our growth plan, he said in a video broadcast on television. But growth requires confidence and stability, and the UK will always do its part, he added.

In financial markets, the pound sterling has increased its gains and long-term bond yields deepened their decline immediately after Jeremy Hunt's announcements, which were originally expected in two weeks.

Around 12 p.m., British currency was worth US$1.12, having hit US$1.13. At the same time, the yield on 20-year gilts (debt issued by the UK) fell 37.9 basis points after losing up to 42 basis points in the session.

Jeremy Hunt will meet with all Secretaries of State this week to decide on future spending plans, Prime Minister Liz Truss's office also announced at the press conference. ;outcome of a meeting of his cabinet.

Liz Truss, British Prime Minister

These spending plans will be submitted to the #x27;Office for Budget Responsibility (OBR), the UK's independent public finance watchdog.

The government is working to restore the country's economic credibility following a financial turmoil triggered by the presentation at the end of September of a mini-budget providing for tax cuts and aid to households and businesses without details of their financing.

The mini-budget then caused the pound to fall and government bond yields to soar, leading the Prime Minister to sack her Minister of Public Affairs on Friday. x27;Kwasi Kwarteng economy, while the Bank of England was forced into emergency intervention in the bond market.

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