Pound strengthens and bonds rally after Jeremy Hunt takes axe to Liz Truss Budget

Chancellor warns of more ‘tough’ decisions as he dismantles Truss and Kwarteng’s economic agenda

The pound strengthened and interest on government debt fell as the markets reacted positively to the new chancellor's dismantling of the September financial plan.

Jeremy Hunt, the former health and foreign secretary, on Monday took an axe to the statement outlined by his predecessor Kwasi Kwarteng only weeks ago.

Mr Hunt scrapped virtually all of the measures outlined Ms Truss’s economic plan, including a 1p cut to the basic rate of income tax, currently at 20p.