Jeremy Hunt says a Treasury-led review will take place into how people are helped with energy bills from April next year.

The objective is to design a new approach to save taxpayers money while targeting support to those most in need, he says.

Business support will also go to those most affected and will incentivise energy efficiency.

Basic rate of income tax to remain at 20p indefinitely.

The chancellor has scrapped plans to cut the basic rate of income tax from 20p in the pound to 19p from April next year.

He says it is not right to borrow to fund this tax cut. The rate will remain indefinitely at 20p until economic circumstances allow it to be cut.

Almost all tax measures in mini-budget reversed

The chancellor is reversing almost all tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation.

The reason he is announcing these measures is to provide confidence and stablility, the new chancellor said.

However the chancellor did say that the cut to National Insurance will remain, as well as cuts to stamp duty.

But almost everything else is gone.

“We will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates”.

Market reaction

The pound rose and government borrowing costs fell as investors welcomed the news.

Sterling extended early morning gains against the dollar, and is now trading at around $1.13.

The news also saw the interest rate on UK government bonds fall, with the yield on bonds due to be repaid in 30 years’ time, which dropped when markets opened on Monday morning, fell further after the statement, to 4.35%.

Meanwhile, the yield on bonds due to be repaid in five years’ time, which underpins the cost of new five-year fixed rate mortgages, also fell to 3.86%.