Michael Holden and Alistair Smoot
LONDON (Reuters) – Britain’s new finance minister Jeremy Hunt said on Saturday that some taxes will increase, requiring tough spending decisions, suggesting the prime minister will further reverse Minister Liz Truss’ efforts to keep his job after just over a month in office.
To calm financial markets after three weeks of turmoil, Truss sacks Kwasi Kwarteng as PM
Polls are dire for the ruling Conservatives and the PM personally Yes, many of her own lawmakers are asking, not if, but how Truss should be removed, and she turned to Hunter to help save her premiership less than 40 days after taking office.
“We’re going to make some really tough decisions going forward,” Hunter said during a tour of TV and radio studios, saying Truss and Kwarteng made mistakes.
“What people want, what the market wants, what the country needs right now, is stability,” Hunter said. “No prime minister can control the market. But what I can do is show that we can pay for our tax and spending plans, which require some very tough decisions on spending and taxation.”
Truss has won the leadership race to replace Boris Johnson on a platform of big tax cuts to spur growth, Kwarteng officially announced last month. But the lack of any details on how the tax cuts will be funded sent the market crashing.
She has now abandoned plans to cut taxes for high earners and said it would increase taxes on businesses, abandoning her suggestion to keep it at current levels. But it’s unclear whether that will be enough to satisfy investors.
Hunter will unveil the government’s mid-term budget plan 31 in October, which will be a key test of his ability to restore his economy. Economic policy credibility. Truss’ plans are likely to change further, he said.
“Determining the public finances, how we’re going to pay for every penny we get through tax and spending decisions, those are the very, very important ways I can identify and help create stability,” he said .
He warned that spending will not increase as much as one would like and that all government departments will have to find greater efficiencies than they have planned.
“Some taxes won’t be cut as quickly as people would like, and some taxes will increase. So it’s going to be difficult,” he said, adding that he would sit down with Treasury officials to discuss the week Six completed the plan ahead of a meeting with Truss on Sunday.
Kwarteng’s September 23 financial statement sparked a backlash in financial markets to the point that the Bank of England (BoE) had to intervene to prevent pension funds from being thrown into disarray when borrowing costs soared.
Hunt, a seasoned minister and seen as a safe hand by many in his party, said he agreed with Truss’ basic strategy to kick-start economic growth, adding Their method didn’t work.
The past few weeks. That’s why I’m sitting here. Lowering the top tax rate at a time when we’re asking everyone to make sacrifices is wrong,” he said.
Hunter said, “flying the lind” and not letting the independent fiscal watchdog budget Tax planning with the Office of Accountability examining data.
The fact that Hunt is the fourth UK finance minister in four months is a testament to what has plagued Johnson since he was ousted over a series of scandals The political crisis in the UK.
Hunter says Truss should be judged in the election and on how she performs next time18 Month – Not the last 18 day.
However, she may not have that chance. Tras scored less than three points during the leadership contest One of the Conservative MPs and has appointed her supporters since taking office – alienating those who backed her rivals.
The leader himself, then backing her Her main rival, former finance minister Rishi Sunak, was seen as a sign that she was reaching out, but the move did little to appease some of her party critics.
“It was for her It’s over,” one such Conservative MP told Reuters after Friday’s events.
The next key test will come on Monday, when the UK government bond market opens for the first time since September Works without emergency buying support from the Bank of England 28. Prices in Phnom Penh plunged late Friday following the Trus announcement.
The newspaper said Truss’ position was in jeopardy, but it was unclear how to replace her as the party or the country had no interest in another leadership election.
“Even Liz Truss’s most loyal ally, looking at this through the most rosy glasses in existence, must now wonder how she can survive,” Daily Mail previously gave Truss a huge backing The tabloid said in an editorial.
“But what else can be done? “