UK finance minister seeks to stem bond rout with Monday plan announcement

LONDON  -New British finance minister Jeremy Hunt will announce tax and spending measures on Monday, two weeks earlier than scheduled, as he tries to stem a loss of confidence in the government’s fiscal plans.

“The Chancellor will make a statement later today, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability,” the finance ministry said. “He will also make a statement in the House of Commons this afternoon.”

Hunt met Prime Minister Liz Truss over the weekend to overhaul economic proposals that triggered a slump in the value of the pound and British government bonds when they were announced on Sept. 23.

Hunt will deliver a fuller medium-term fiscal plan as scheduled on Oct. 31 alongside forecasts from the independent Office for Budget Responsibility, the Treasury said.

Hunt met Bank of England Governor Andrew Bailey and the head of Britain’s Debt Management Office late on Sunday to brief them on his plans, the Treasury said.

Sterling rose in trading in Asia in thin volumes early on Monday.

Hunt faces another test of his attempt to stem the crisis of confidence at 8 a.m. (0700 GMT) when the bond market reopens.