Sterling rises as Jeremy Hunt prepares to reverse more of Truss’s plan

Liz Truss has 'weeks rather than months' left says Neil

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The pound climbed higher in early trading on Monday after the Treasury confirmed that newly appointed Chancellor Jeremy Hunt would announce tax and spending measures today, two weeks earlier than expected. Mr Hunt has pledged to regain Britain’s economic credibility by fully accounting for the government’s tax and spending plans. It is thought that Mr Hunt could announce that Ms Truss’s 1p cut to the basic rate of income tax – a centrepiece of her financial blueprint which was due to take effect from April – will now being deferred until 2024. That had been the original date for the cut that Rishi Sunak had announced when he was Chancellor under Boris Johnson. The efforts come amid discontent from within the Conservative Party, with three MPs already breaking ranks and calling on Ms Truss to go. Sterling gained 0.6 percent to $1.1245 in early Asia trade after Liz Truss on Friday said that Britain’s corporation tax would rise to 25pc from April next year, instead of keeping it at 19 percent as part of the government’s initial mini-Budget.

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Bank of England ‘ceased all bond purchases on Friday’

The Bank of England has released a statement confirming that it {ceased all bond purchases on Friday 14 October” as planned.

The statement read: “The purpose of the operations was to provide time for LDI funds to address risks to their resilience from volatility in the gilt market, not to provide a permanent backstop.

“As intended, these operations have enabled a significant increase in the resilience of the sector.”

Good morning

Good morning from London. I’m Tara Fair, I’ll be bringing you all the latest developments on the Great British Pound. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.

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