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New UK chancellor admits ‘mistakes’, warns of tax hikes | Business and Economy News


Jeremy Hunt warned of the tax hike, saying ‘very difficult decisions lie ahead’, as Chancellor Liz Truss faces backlash.

New Finance Secretary Jeremy Hunt said the UK government had made a mistake, referring to the cabinet’s controversial tax-cutting plans that have caused turmoil in financial markets and caused a stir. sacked predecessor Kwasi Kwarteng.

“There have been mistakes. It was a mistake that we would demand tough decisions in the board about taxes and spending to cut the tax rate paid to the very wealthy,” Hunt told Sky News on Saturday. in the first day as prime minister of the pass.

“It would be a mistake to fly blind and make these projections without giving people the confidence of the Office of Budget Responsibility when it says the total sums. The prime minister has realized that, that’s why I’m here.”

In a separate BBC interview, Hunt also said he had been sanctioned by Prime Minister Liz Truss for making further changes to the government’s financial plan after twice overturning the cuts. her taxes.

Hunt’s comments are intended to calm financial markets that have been unsettled for three weeks. It also comes a day after Truss fired Kwarteng as her chancellor and scrapped parts of their controversial economic package in a desperate bid for political survival, less than 40 days since she came to power.

By Kwarteng financial statements as of September 23 The backlash in financial markets was so intense that the Bank of England had to step in to prevent pension funds from getting caught up in the chaos as borrowing costs soar.

In a rushed press conference shortly after Kwarteng’s firing, Truss said corporate tax rates would rise, abandoning her plan to stay at current levels and government spending would increase less than planned. previously planned.

Massive, unreturned tax cuts were a central part of Truss’ original plan, but Hunt said a tax increase was on the cards.

“We’re going to have some very difficult decisions ahead of us,” he said.

“What people want, the market wants, the country needs now, is stability,” Hunt said. “No prime minister can control the market. But what I can do is show that we can afford our tax and spending plans, and that will require some very tough decisions about both spending and taxes.”

Hunt is expected to release the government’s medium-term budget plan on October 31, a key test of its ability to show investors that they can restore economic policy credibility. mine.

Spending won’t increase as much as people would like, he said, and all government agencies will have to figure out more efficiently than they plan to.

“Some taxes will not be cut as quickly as people would like, and some taxes will go up. So it will be very difficult,” he said.

Truss will spend the weekend trying to lift her up flag support within the Conservative Party, with newspapers quoting politicians who questioned her ability to continue.

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