New British finance minister Jeremy Hunt will announce tax and spending measures on Monday, two weeks earlier than scheduled, as he races to stem a dramatic loss of investor confidence in Prime Minister Liz Truss's government.
Battling to rewrite Truss's economic programme since he replaced the fired Kwasi Kwarteng on Friday, Hunt is expected to make a statement around 11:00 a.m. (1000 GMT) to try to halt a bond market rout that has raged since the government set out vast unfunded tax cuts on Sept. 23.
Sterling was up about 0.8% against the dollar in trading in Asia. Some lawmakers in the ruling Conservative Party - agitating to drive Truss out of office - said it was now clear that Hunt had seized control of the government.
"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 in an unexpected statement released around 6 a.m.
"He will also make a statement in the House of Commons this afternoon."
Truss, Britain's fourth prime minister in six years, was elected last month by party members on a platform to snap the economy out of years of stagnant growth by slashing taxes and regulation.
But markets reacted violently, hammering the value of the pound and government bond prices, and forcing Truss to fire her finance minister and appoint Hunt to reverse course.