Might this be the biggest u-turn in British economic history? 

Almost all of the tax measures in Kwasi Kwarteng’s explosive mini-budget will be reversed, the new chancellor, Jeremy Hunt, has announced.

While the planned cuts to stamp duty and national insurance will continue, the basic rate of income tax will stay at 20p, rather than being reduced to 19p, “indefinitely until economic circumstances allow for it to be cut”. Of the £45bn in tax cuts first announced in the mini-budget, £32bn will now be reversed.

The chancellor’s statement from the Treasury this morning comes ahead of a more detailed announcement in the House of Commons later today, but was intended to calm the markets.

“The most important objective for our country right now is stability,” he said, “Governments cannot eliminate volatility in markets but they can play their part and we will do so.”

Hunt also revealed that the energy price guarantee will only last until April, and will be followed by a more targeted system to help the most vulnerable but also save money for taxpayers.

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,” the chancellor said.

Following the announcement, the value of the pound has risen, now trading at $1.13, while government bonds have also rallied.

But Liz Truss’s growth plan has been gutted. 

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