UK Chancellor Jeremy Hunt will set out billions of pounds of savings to stabilise the public finances in an emergency statement on Monday.
The Treasury said the move – following talks over the weekend between Mr Hunt and Prime Minister Liz Truss – was designed to “ensure sustainable public finances underpin economic growth”.
Following his statement, the Chancellor will address the House of Commons later on Monday ahead of the publication of his full medium term fiscal plan on October 31.
The move will be seen as an attempt to reassure the financial markets after weeks of turmoil in the wake of former chancellor Kwasi Kwarteng’s £45 billion mini-budget tax giveaway.
Following his surprise appointment on Friday, Mr Hunt effectively tore up Ms Truss and Mr Kwarteng’s previous economic strategy to cut taxes in an attempt to boost growth.
Instead, he warned that taxes would have to go up while spending would rise less quickly than had previously been planned.
Among the measures announced by Mr Kwarteng expected to be ditched are his promise to bring forward a 1p cut in the basic rate of income tax to April.
The Chancellor @Jeremy_Hunt will make a statement this morning, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability.
A statement to @HouseofCommons will follow this afternoon.
Read more: https://t.co/iA4DkquxaP pic.twitter.com/d29N5vaxrC— HM Treasury (@hmtreasury) October 17, 2022
The measures come as Ms Truss continues to fight to hold on to her leadership, with three Conservative MPs already breaking ranks to call on her to go.
Crispin Blunt, Andrew Bridgen and Jamie Wallis all called on the Prime Minister to quit on Sunday, while other senior figures within the parliamentary party expressed deep unease with Ms Truss’s leadership but stopped short of calling for her to go.
Mr Blunt was the first MP to demand her exit, telling Channel 4’s Andrew Neil Show on Sunday: “I think the game is up and it’s now a question as to how the succession is managed.”
It came at the end of another extraordinary weekend in British politics, that even saw US President Joe Biden intervene to call Ms Truss’s economic vision a “mistake”.
