Hunt, who was appointed chancellor after Truss sacked Kwarteng on Friday (14th October), said the new measures would “ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline”. 

The tax cuts which have been scrapped include the plan to reduce the basic rate of income tax to 19% announced by Kwarteng — Hunt confirmed that the income tax will remain at 20% indefinitely.

The chancellor will also not take forward the plan to cut dividends tax by 1.25 percentage points from April 2023.

In addition, the Energy Price Guarantee and the Energy Bill Relief Scheme will only continue until April next year.

However, Hunt confirmed that the cuts to stamp duty and National Insurance will remain in place.

The measures are expected to raise an extra £32bn per year.

This page will be updated throughout the day with comments from industry experts — stay tuned to read the latest opinions from the market.

5:20pm

Jack Coombs, director at Aspen Bridging:

“The new chancellor's announcement seemingly represents a major step towards convincing the markets of the government's fiscal responsibility. The problem is, given the incredibly weak position of the PM, and the high probability of a new one in the near future who may or may not be Hunt, what weight will these announcements carry?

"At least, despite the increase in corporation tax now due next year, it remains better news than the previous plan of notably growing the UK’s debt to GDP with no resolution in sight.”

4:15pm

Riz Malik, director at R3 Mortgages:

"Over the weekend, Hunt repeatedly said that he would do what he can to ensure rates do not go higher than they need to; that was a colossal shift from Truss, who kept on passing the buck to the Bank of England.

"When the person who has been on the job for four days looks more like a PM than the actual PM, you know you need to call a removal van to No 10.

"She had the opportunity on Friday to redeem herself and save her job, but she ran out of the press conference like Usain Bolt. It's game over surely for the PM."

2:08pm

Moubin Faizullah Khan, CEO of GetGround:

"While market turbulence and financial downturns are nothing new, the domino effect of Brexit, the pandemic, geo-political turmoil, fast-rising inflation and now contentious fiscal policy making were creating a uniquely unpredictable set of market conditions.

"Landlords and investors don't need any more uncertainty and so we welcome the new Chancellor's pronouncements today to steady the ship.

"We must wait and see, but it doesn't feel too optimistic to hope that today's clarity will create some stability.

"That in turn will enable landlords and investors to get on with business, providing quality homes to people to live in and protecting and supporting their tenants as the cost of living crisis continues." 

2pm

Jamie Lennox, director at Dimora Mortgages:

"Backtracking isn't going to help millions of mortgage customers who have already been left up the creek without a paddle.

"Today's announcement by the new chancellor may calm the markets, but mortgage lenders are currently swamped with applications due to the tidal wave that followed the now doomed mini-Budget; and they are not simply going to lower interest rates overnight because they will drown with a further influx of applications.

"The average worker is not only now facing sky-high mortgage payments and the insane cost of living, but with the scrapping of the reduction of the basic rate of tax and the undecided future for the energy support post April, the British public have been well and truly been hung out to dry."

1:20pm

Nicky Stevenson, managing director at Fine & Country:

“Against a backdrop of spiking interest rates and unprecedented volatility in the mortgage market, a U-turn on stamp duty would have represented a worrying set-back for the housing market, and buyers will be breathing a sigh of relief at Hunt’s commitment to pressing ahead with change in this area.

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“All eyes will now be on the effects of the broader rollback on tax cuts and the near term trajectory of interest rates.

“With the Bank of England poised to hike its base rate further in November, we anticipate a period of subdued transaction levels in the months ahead as purchasing power continues to be eroded. This remains a challenging time for both existing homeowners and buyers, as rising borrowing costs force them to reassess their budgets and make hard choices.” 

Mark Robinson, managing director at Albion Forest Mortgages:

“With the Bank of England and the government seemingly back on the same page, there may be light at the end of the tunnel for our economy.

"While Truss may have thrown Kwarteng under the bus over this, I think we still need a change in leadership at the top. It will be an interesting few days and weeks to see what mortgage lenders do with this renewed confidence the Bank of England has in the chancellor."

12:54pm

John Phillips, national operations director at Just Mortgages:

“With many of the key pledges of the ‘mini-budget’ now reversed or scrapped entirely, it seems this is far more than just a U-turn, but rather a cannonball to the new PM’s entire agenda.

“Nevertheless, the hope is the changes will bring back some much-needed confidence to the market and interest rates will begin to stabilise.

"It’s positive to see the pound already beginning to improve with this news.

"With the stamp duty change remaining as one of the few ‘mini-budget’ pledges to survive, there’s hope that, despite rising interest rates, confidence in the market will stay strong.

“It goes without saying that brokers shouldn’t expect things to now go 'back to normal' as the market will remain unsettled.

"As a result, brokers will need to keep up the hard work to support those looking to move or remortgage.

"There are still 1.7 million people who will be coming off low fixed-term mortgages in the next year, who will now be facing tougher criteria, tightened affordability and more expensive mortgage options.

“There will be a generation of homeowners and house buyers unsure what their next step should be, desperate for solid financial advice to make sense of this rapidly changing market.

"Brokers are in the best place to respond to this demand and support those who will still want or need to make moves in the current climate.”

12:40

Jatin Ondhia, Co-founder and CEO of Shojin:

"Hunt's appointment as Chancellor may have been Truss' last-ditch attempt to save her Premiership.

"However, 72 hours into the role and he has ripped up her entire political and economic game plan, leaving her perilously close to the door.

"One would assume that the lack of willing, viable alternative is the only thing saving Truss for now.

"Even with the almost complete U-turn on Kwarteng's disastrous mini budget, the economic impact will still be felt.

"This will come in the form of uncertainty across financial markets and, it seems, higher-than-expected interest rate hikes from the Bank of England between now and Christmas.

"Let's hope that Hunt's decisive action will help calm matters and, when the next statement comes on 31 October, we can get greater clarity on the short-, medium- and long-term fiscal plans.

"The new Chancellor was keen to stress the word 'stability' today, and if he can at least deliver that, then investors, developers and the property market as a whole will breathe a little more easily."

12:25pm

Alastair Hoyne, CEO at Finanze:

"After the ousting of Kwarteng, we were promised no further U-turns; we have, in fact, repetitively been promised 'no further changes'.

"Can we actually believe anything they have to say anymore? I’m surprised anyone has any confidence left in this Government after crying wolf so many times now. What was the point in the no-confidence vote, if we have just gone back to the status quo?"

Mark Hawthorn, CEO at LDS:

"While many would have initially viewed the tax cuts as a positive, this was quickly proven to be short-sighted, as the extreme market reactions demonstrated.

"There is a viewpoint that we are just back to square one here, but a lot of damage has been done.

"Despite the political reset, there is a sting in the tail for housebuilders, as mortgage rates have risen rapidly and buyer confidence has fallen."