Britain's new chancellor, Jeremy Hunt, on Monday scrapped plans to cut government taxes that had confused markets and plunged the pound to a record low against the dollar.
Hunt said in a televised conference that he has canceled all financial plans and tax cuts announced about three weeks ago.
This comes, after weeks of a deterioration in the financial markets in the United Kingdom with the announcement of the tax plan, at a time when the pound fell to its lowest historical level to 1.06 dollars, before recovering later.
According to Hunt, who was appointed finance minister last Friday, the budget announced by his predecessor, Kwasi Quarting, last month, hurt the overall financial situation.
On Friday, British Prime Minister Liz Truss dismissed Finance Minister Kwasi Quarting, just 38 days after his appointment.
Hunt said the tax changes he unveiled would raise 32 billion pounds ($36.16 billion) a year in additional revenue.
Among the changes was the indefinite suspension of the plan to cut the basic rate of income tax, after it was scheduled to run until April next year under the prime minister's original plans, which sparked the turmoil in the financial markets.
Hunt confirmed that his department would reconsider maintaining its energy subsidy package for consumers beyond this winter.
"Today I am announcing a Treasury-led review of how to support energy bills beyond April this year," he said, ahead of a longer statement expected to Parliament on rolling back a number of other measures.