Hunt rescinds income tax cut, cuts energy aid

British Chancellor of the Exchequer, Jeremy Hunthas announced this Monday that it cancels the planned reduction from 20 to 19% from April of the basic income tax band, in order to reduce public debt and calm the markets.

The aid to limit the price of the energy bill for companies and households introduced this month and which was to last two years will also be restricted at the start of the new fiscal year in April, the minister said in a televised speech.

Hunt took office last Friday to replace Kwasi Kwarteng, who was fired by the Conservative Prime Minister Liz Truss, after her presentation on September 23 of a fiscal plan without details of how it would reduce debt sowed chaos in the financial markets.

The new minister declared today that the drastic changes to that plan, worth around 32 billion pounds (37 billion euros) a year, aim to “guarantee financial stability and give confidence in the Government’s commitment to fiscal discipline.

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

Communicating Kwarteng’s departure on Friday, the conservative leader reversed her decision to freeze corporate tax, and indicated that in April it will rise from 19% to 25%, except for small businesses, as the previous government had arranged.