China News Service, October 17th. Comprehensive report. On October 17th, local time, the new British Chancellor of the Exchequer Hunt issued a statement announcing the cancellation of almost all tax cuts in the British government's "mini budget" plan.

At present, the market reaction to Hunter's statement is positive, but there are still voices worried, whether the statement can be supported by the government or the Conservative Party?

The successive turns of policy have also severely damaged the ruling credibility of British Prime Minister Truss.

"Almost all tax cuts reversed"

　　British Sky News reported that Hunt said in a statement that "almost all" of the tax cuts in the "mini-budget" policy had been scrapped.

On October 14, 2022, local time, the new British Chancellor of the Exchequer Jeremy Hunt left 10 Downing Street in London, England.

　　According to reports, Hunter canceled plans to cut the basic personal income tax rate from 20% to 19% from April next year.

He said the base rate would remain at 20% indefinitely until economic conditions allow it to be lowered.

　　Hunter said no government could control the market, but it could provide certainty for public finances.

He said the plan he announced would avoid uncertainty ahead of the release of a comprehensive fiscal plan at the end of the month, which would bring confidence and stability.

　　On energy, Hunt said the biggest single item of expenditure in the measure was the Energy Price Guarantee, a landmark policy to support millions of people through a difficult winter.

From April next year, the Treasury will lead an assessment of how it can help households and businesses address energy bills.

The energy price guarantee will end in April next year.

　　"Our goal is to devise a new approach that saves taxpayers money while targeting aid to those most in need," he said.

　　The report said the market reacted positively to Hunter's statement, with the pound extending its early gains against the dollar.

The announcement also caused interest rates (or yields) on UK government bonds to fall, reducing the cost of government borrowing.

　　The BBC's economics editor said the announcement was unusual and marked perhaps the biggest U-turn in British economic history.

The announcement should help restore credibility to the economy, but it's such a political shift that it's doubtful the entire cabinet, government and Conservative Party will support it, but the new chancellor's message is: nothing choose.

Can Truss survive the crisis?

　　Reuters said the announcement came two weeks earlier than originally planned, as Hunter is trying to stem a sharp drop in investor confidence in the Truss-led government.

Hunter has struggled to rewrite Truss' economic plan since replacing the sacked Kwarten not long ago.

On September 6, local time, Elizabeth Truss delivered her first speech since becoming the new British Prime Minister in front of the Prime Minister's Office in London.

　　The British "Financial Times" reported on the 17th that Hunter admitted that the "mini-budget" policy introduced by the Truss government in September "goes too far and too fast".

He also criticized his predecessor Kwoten for making two major "mistakes" and said the two measures were being "corrected".

　　At present, the British people are suffering from inflation, and household energy bills will soar to an all-time high.

Analysts pointed out that in the context of rising prices and soaring living costs, the government's large-scale tax cuts will further stimulate the UK's inflation rate.

　　A senior British official said: “It’s clear that Truss has not done enough, there will be more U-turns and more pain. I don’t think they realise it could get worse.” pointed out that any further U-turn in government policy is likely to further jeopardize the prime minister's position.

　　Some senior MPs predict she will struggle to survive the current crisis.

Some British media pointed out that more than 100 Conservative MPs are ready to submit a no-confidence motion against Truss this week.

　　On September 23, the British government announced the country's largest tax cut in 50 years, but it caused market turmoil and was questioned and criticized by the outside world.

Under heavy pressure, the British government's tax reduction measures took a major turn on October 3, when the government announced that it would abandon the plan to cancel the top income tax rate.

　　In just over 10 days, the British government made major policy adjustments.

Truss announced on the 14th that she would retain the corporate tax hike announced by the previous government, which she had promised in her Conservative leadership race to cancel.

　　She also fired Hunter's predecessor, Kwarten, but Truss failed to use those moves to calm the market.

The turmoil over the tax cut package continued after a fresh sell-off in the UK government bond market following her hasty Downing Street press conference that lasted about eight minutes.