The new Chancellor of the Exchequer Jeremy Hunt has abandoned almost all of the government’s mini-budget which was introduced three weeks ago.

This is a huge change of direction and a big blow for Prime Minister Liz Truss who is under enormous pressure following some of the recent decisions her government has made.

Most of the government’s original plans were scrapped by Mr Hunt
Photograph: Leon Neal/Getty Images

What did the chancellor say?

The chancellor announced that almost all of the tax cuts introduced as part of the mini-budget will now be reversed.

He also announced that the plan to cut income tax – which is a percentage taken off your wage that is paid to government –  will no longer be going ahead.

The government had recently promised a cap on energy bills to limit how much every household has to pay for using gas and electricity.

The chancellor said in his statement that this support will now only be guaranteed until April next year – instead of the two years that had been previously promised by Kwasi Kwarteng.

The support households receive with their bills beyond April will be reviewed.

Kwasi Kwarteng was fired from his role as chancellor last week
Photograph: Toby Melville/Reuters

Why has the chancellor reversed these plans?

Mr Hunt says his announcement is designed to “cost the taxpayer significantly less than planned, whilst ensuring enough support for those in need.

“As I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable, and I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth,” he said.