The UK government’s humiliating U-turn on the higher tax rate reforms will not be enough to calm turbulent financial markets, warns the CEO of one of the world’s largest financial advisory, asset management and fintech organisations.

The warning from Nigel Green of deVere Group comes as it is reported that the Chancellor, Kwasi Kwarteng, plans to bring forward his medium-term fiscal plan announcement to this month.

The deVere CEO says: “Mr Kwarteng’s bringing forward of the plan to this month rather than 23 November underscores just how badly the so-called mini budget was received by financial markets.

“Having the announcement sooner rather than later is the right thing to do, as the longer the markets wait for proof that the government’s fiscal agenda is sound, the higher the risk of turbulence.

“However, the bringing forward of the announcement and the scrapping of plans to axe the 45p tax rate stinks of desperation.”

He continues: “The forthcoming amendments to the reckless mini budget that we know already are unlikely to calm markets in a significant way.

“Sterling did regain some ground higher against the dollar and gilt yields fell on the scrapping of the 45p rate announcement, but the pound will remain under pressure and high bond yields remain of serious concern.

“Investors’ trust in UK plc has had a hole blown through it.”

Last week, Nigel Green noted that markets now know where the weakness lies. He added: “If they don’t budge, they will have blown up the UK mortgage market, UK pensions, amongst others, and eventually this could spread to impact the wider global financial markets which themselves are sitting on thin ice as liquidity disappears.”

“Prime Minister Liz Truss and her Chancellor Kwasi Kwarteng have created a loop of doom.

He concludes: “There will be some relief that the UK government finally seems to be listening somewhat.

“However, the modified plans do not go nearly far enough to ease markets and regain economic trust and confidence.”