UK Conservative Leadership Candidate Jeremy Hunt said on Monday that he wants to cut all taxes. Hunt added that “I can tax cuts within our current fiscal rules.”

Meanwhile, various UK media outlets are reporting UK Finance Minister Nadhim Zahawi has plans to impose 20% cuts on every government department in order to pay for his planned tax cuts. Zahawi entered the race to succeed Boris Johnson as PM.

Over the weekend, Foreign Secretary Liz Truss joined the UK Conservative Party leadership race and declared her plans to start cutting taxes "from day one".

Another leadership contender, Tom Tugendhat, echoed Truss's calls to lower taxes, and said he would be "looking to lower taxes across every aspect of society".

The newly-appointed Foreign Office Minister Rehman Chishti also declared his candidacy on Sunday, according to BBC News.

Market reaction

GBP/USD remains on the defensive amidst looming UK political uncertainty and the timeline of the leadership hunt seemingly longer. At the time of writing, cable is trading at 1.1969, down 0.50% on the day.