Scots are set to see their energy bills rocket after Jeremy Hunt announced the universal support scheme will be cut in April.
The new Chancellor of the Exchequer told a news conference the help will end and instead targeted and capped help will be given beyond April. Hunt announced yet another u-turn to the mini-budget after the scheme was initially rolled out for two years.
Hunt also revealed the government will continue with its planned cut to stamp duty in England and its reversal of the 1.25 percentage point increase in national insurance contributions.
He said: "The biggest single expense in the growth plan was the energy price guarantee. This is a landmark policy supporting millions of people through a difficult winter ad today I want to confirm that the support we are providing between now and April next year will not change.
"But beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.
"So I'm announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
"Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency."
Hunt said the majority of the announcements by Kwarteng would be reversed.
He added: "We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation.
"So whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms introduced in 2017 and 2021, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.
"Growth requires confidence and stability and the United Kingdom will always pay its way. This Government will therefore take whatever tough decisions are necessary to do so."
During his statement from the Treasury he also announced the Government will ditch plans for new VAT-free shopping for international tourists.
He also revealed announced the Government will scrap plans to reduce the basic rate of income tax from 20% to 19% in April next year in England and Wales, a move that had been forecast would cost the Exchequer almost £5.3 billion in 2023-24.
Ahead of the statement former Tory chief whip Andrew Mitchell claimed Truss has just a fortnight left to save her premiership.
Pressed by Times Radio's Matt Chorley on whether Truss would lead her party into the next general election, Mitchell said: "I think the next two weeks will be critical in determining the answer to that question."
The Sutton Coldfield MP downplayed the obstacles to removing the Prime Minister after October 31, when Chancellor Jeremy Hunt is due to set out his medium-term fiscal plan.
"If over the next two weeks it becomes clear to the parliamentary party that the Prime Minister needs to change, or be changed, then the technicalities or the mechanism are not important," he said.
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