Jeremy Hunt
Image Credit: Bloomberg

London: New British finance minister Jeremy Hunt will accelerate plans on Monday to bring order to the UK's public finances in a fresh bid to reassure markets still skittish about Liz Truss's premiership and economic program.

Three days since taking over the Treasury, Hunt will make a statement this morning on measures to "support fiscal sustainability," his office said in a statement and on Twitter. He will then speak to the House of Commons in the afternoon.

Hunt spoke with Bank of England Governor Andrew Bailey and the head of the Debt Management Office late Sunday, it said. The Chancellor will deliver a full fiscal plan on October 31.

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The new Chancellor spent the weekend outlining a radically different fiscal approach from Truss's plan, saying taxes would have to rise and spending would have to be cut. That was part of a bid to prevent further punishing increases in UK government borrowing costs.

Truss has already been forced into a series of U-turns since investors dumped the pound and gilts after her call for Pound45 billion in unfunded tax cuts. She fired her first chancellor and shelved plans to freeze corporate tax and lower the top rate of tax.

While the pound rose in Asia trading as investors expressed confidence in Hunt, economists still warn there is a budget hole to fill with Bloomberg Economics calculating Pound24 billion more is needed to return the national debt to sustainability. The Sunday Times reported Hunt plans to delay by a year a plan to cut the basic rate of income tax, saving Pound5 billion ($6 billion).