The new British Chancellor of the Exchequer, Jeremy Huntannounced a heavy resizing not just gods deficit tax cutsbut also of public grants announced by the government of Liz Truss last month to sterilize the increases in energy bills borne by households and businesses caused by the international crisis and the war in Ukraine. In its emergency statement today, released in writing to reassure the markets, the duration of the subsidy was reduced at the moment a 6 mes (until April) against the promised 2 years: with a savings on the debt equal to approx 100 billion pounds.
«Almost the entire tax package»Introduced with the mini maneuver launched by the British government of Prime Minister Liz Truss on 23 September«will be deletedHunt announced, noting that he will not be there neither the promise reduction of the tax rate from April 2023 base on minor incomes from 20 to 19%, postponed indefinitely.
I British government bonds and the GBP I am flew immediately after the announcement of Jeremy Hunt’s public intervention this morning. Yields on gilts, UK government bonds, drop by 29 basis points on the 10-year maturity, with a yield falling to 4.02% as the pound gains nearly 1% against the dollar at 1.128, after also exceeding odds 1.13. The increases in the London Stock Exchange (+ 0.4%) were in line with the other lists.