Chancellor of the Exchequer Jeremy Hunt ripped up most of what was left of Prime Minister Liz Truss’s controversial economic program, scrapping tax cuts and cutting back support for household energy bills in an effort to restore order to the UK public finances.
Hunt set out £32 billion ($36 billion) of savings in response to a backlash against Truss’s plan, which spooked investors and pushed up borrowing costs. The measures were less than half of what economists say he may eventually need to put the deficit on a stable trajectory after soaring inflation and sputtering growth gutted tax revenue.
Together with earlier U-turns, the decisions reverse almost all of the £45 billion in tax cuts and giveaways Truss announced in September, raising questions about whether she can survive in office. The only major changes left from that announcement are those that are already part way through legislation, on national insurance contributions and stamp duty.
