Why was most of mini-budget scrapped and what happens next?

The chancellor, Jeremy Hunt, centre, warned of further ‘difficult decisions’, and concluded by saying that some areas of spending would need to be cut. Photograph: Simon Walker/HM Treasury

Jeremy Hunt has said he will scrap most of the unfunded tax cuts in the mini-budget, in the latest government U-turn designed to boost the financial markets’ confidence.

Days after replacing Kwasi Kwarteng as chancellor, Hunt said he would cancel all the remaining measures in the ill-fated tax and spending plan that had not yet been legislated for. Here are the reasons why he is taking action.