UK Chancellor of the Exchequer Jeremy Hunt has ditched almost all of Prime Minister Liz Truss' tax cuts announced in the British government's mini-budget three weeks ago.
He announced the basic rate of income tax would remain at 20 percent indefinitely - instead of being cut.
The cap on energy prices charged to British households will no longer last two years and is only guaranteed until April next year.
Hunt says the government has to make hard decisions to ensure economic stability for the country.
The economic U-turns taken by the conservative government has led to strong criticism of the Prime Minister.
In his address to the house of commons earlier Labour Party Leader Sir Keir Starmer said the Truss government cannot provide stability for Britain, only chaos.
The Prime Minister has responded to the Chancellor's new economic plan saying the government was charting a new course for growth. She is yet to address the house of commons.
BBC international business correspondent Theo Leggett spoke to Guyon Espiner.
