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New UK Chancellor Jeremy Hunt reversed the majority of his predecessor's mini-budget on Monday, in an attempt to calm investors nerves in London, which was showing signs of working as the FTSE 100 and pound both moved higher.
Hunt issued an emergency statement as he sought to restore stability following weeks of turmoil. He confirmed he is ditching many of the measures in the mini-budget, including the planned cut to income tax.
In an emergency statement, he said: "We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation."
The pound was quoted at $1.1409 late Monday, up sharply from $1.1235 at the London equities close on Friday.
"Markets seem prepared to give Jeremy Hunt the chance to turn back the clock. Sterling is up, gilt yields have fallen sharply, and London's indices are on the front foot," AJ Bell analyst Danni Hewson said.
"The new chancellor has bought the government some breathing space and this morning‘