MPs in south Cumbria have reacted to the Government's U-turn on Kwasi Kwarteng's mini-budget. 

New chancellor Jeremy Hunt's announcement saw a 1p income tax reduction ditched and plans to cancel a rise in corporation tax scrapped.

Mr Kwarteng was sacked by Prime Minister Liz Truss in the wake of the economic fallout from his mini-budget announcement on September 23.

Tim Farron, who represents Westmorland and Lonsdale, called for Ms Truss to resign and said it was time for a general election to end 'this chaos'.

He said Mr Hunt's emergency statement was a 'response to the ongoing crisis in the Conservative government'. 

“It also speaks volumes about the Conservatives’ total disregard for rural communities like ours in Cumbria that one of the only things that hasn’t been axed from the mini-budget is the cut in stamp duty – a measure which will fuel excessive second-home ownership and the Airbnb boom that is turning our communities into ghost towns and ejecting local families," he said.

Barrow and Furness MP Simon Fell described Mr Hunt as a 'sensible figure' who could 'reassure the markets and get the Government back to the principles of sound money'.

"There’s nothing wrong with going for growth, and making reforms to the economy that enable us to get there. But you simply can’t achieve it without confidence and stability," said Mr Fell.

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"He [Mr Hunt] is continuing the measures in the mini-budget that do matter and will make a big difference to communities like ours – not least investment zones, where we have bids in at Ulverston and Barrow, cutting national insurance, putting £350 back into people’s pockets, and accelerating key infrastructure schemes, with the A595 bypass at Grizebeck being one of them," he said.

Victoria Scholar, head of investment at Interactive Investor, said: “The markets are responding positively to the new chancellor’s plans to reverse almost all of the tax cuts announced by his predecessor.

“Jeremy Hunt’s focus on reassuring the markets and reinstating confidence appears to have worked so far, with gilt yields trading lower and sterling pushing higher."