Jeremy Hunt, the U.K.'s new chancellor of the Exchequer, said Monday he was reversing "almost all" of a controversial economic plan as he attempts to calm markets and stabilize Prime Minister Liz Truss' government.
Why it matters: The plan — which would've cut around $48 billion worth of taxes if implemented in full — shook the British economy and, at one point, sent the pound to a record low against the dollar.
- Truss fired Hunt's predecessor Kwasi Kwarteng on Friday after less than six weeks in office.
- Her government had previously reversed two other key aspects of the plan — cuts to taxes paid by corporations and the country's highest earners.
Driving the news: Hunt revealed Friday that only a cut to national insurance — a social security tax — and a small stamp duty cut would remain from the original plan, saying "it is not right to borrow to fund this tax cut."
- He also announced the government would scale back a cap on energy prices.
What he's saying: "A central responsibility for any government is to do what's necessary for economic stability," Hunt said. "This is vital for businesses making long-term investment decisions and for families concerned about their jobs, their mortgages and the cost of living."
- "No government can control markets, but every government can give certainty about the sustainability of public finances," he added.
