Sunak pushes 'Halloween budget' back 3 weeks so 'difficult decisions' can be made to plug £40b hole in UK finances
26 October 2022, 09:11 | Updated: 26 October 2022, 11:46
Jeremy Hunt's key financial statement has been delayed three weeks to allow for "difficult decisions" to be made about how to plug the £40 billion black hole in the country's finances.
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The Chancellor will now deliver an Autumn Statement on November 17 - where he is expected to unleash spending cuts to plug the monster gap in the public purse.
Mr Hunt was due to make a speech on Halloween, outlining his fiscal plans in more detail after his outline steadied the markets in the aftermath of a disastrous mini Budget from his predecessor.
But at the first meeting of new Prime Minister Rishi Sunak's Cabinet, it was agreed to delay the plans to ensure they were "based on the most accurate possible economic forecasts".
Mr Hunt said afterwards: "I want to confirm that it will demonstrate debt falling over the medium term which is really important for people to understand.
"But it's also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.
"And for that reason the Prime Minister and I have decided it is prudent to make that statement on November 17 when it will be upgraded to a full autumn statement."
Mr Hunt said he discussed the move with Bank of England Governor Andrew Bailey on Tuesday night, adding he "understands the reasons for doing that and I'll continue to work very closely with him".
Listen to Rishi Sunak's first PMQs live on Global Player.
Foreign Secretary James Cleverly earlier told LBC's Nick Ferrari at Breakfast that Mr Hunt's key financial statement may not happen on October 31 as planned.
"I don't want to say that as a cast iron guarantee," said Mr Cleverly when Nick asked whether the Budget would still happen on Monday.
"Obviously the date as set was by the former Prime Minister.
"We now have a new Prime Minister who was appointed less than 24 hours ago.
Foreign Sec: I can't guarantee the financial statement will happen on Oct 31st
"He will want to work with his Chancellor to make sure that that statement matches his priorities.
"It just strikes me that that may - and as I said I don't want to set hairs running - may mean that we have to take a little bit of extra time on that.
"But we all know that people want certainty, that they want to know what's happening next and so that will be coming through very, very soon.
"It may well be on the 31st but I wouldn't want to give that as a cast iron guarantee just because of circumstances."
Read more: Rishi's team to 'fix' Britain: Continuity Cabinet sees return of Hunt, Gove and Braverman
Liz Truss first appointed Kwasi Kwarteng as Chancellor when she became Prime Minister.
His first move was to announce a mini Budget that sent the markets into turmoil.
The value of the pound plummeted as economists were spooked by the government's plan to borrow more in order to fund tax cuts.
Mr Kwarteng was due to make a further statement in November, and later moved it to October 31 as the markets showed no sign of steadying - but then he was sacked and Mr Hunt was brought in with an alternative plan that calmed the economy.
Shortly after that Ms Truss herself stepped down, and Mr Sunak was brought in less than a week later.
James Cleverly: UK's support for Ukraine under Rishi Sunak is 'unwavering'.
Mr Sunak was formally made Prime Minister on Tuesday.
His new-look Cabinet met for the first time at 9.30am on Wednesday, when they agreed to delay the statement.
The new Prime Minister culled nearly a dozen of Liz Truss's top-tier ministers on Tuesday, including Jacob Rees-Mogg, while reviving the careers of a host of big names, including Suella Braverman, Dominic Raab and Michael Gove.
Mr Sunak pledged to "fix" Britain with his continuity Cabinet.
He will also face his first Prime Minister's Questions later on Wednesday.
Watch: Andrew Marr: Sunak's 'bold' Cabinet reshuffle shows how confident he really is
Top of the new Prime Minister's agenda is relations with the US and Ukraine.
He had calls with Joe Biden and Ukrainian President Volodymyr Zelenskyy on Tuesday.
A Downing Street spokesperson said the UK's support for Ukraine would be "as strong as ever under his premiership", and that Ukraine's leader "could count on his government to stand in continued solidarity".
Following the chat, Mr Zelenskyy said: "I believe that the partnership between our countries and the already traditional British leadership in the defence of democracy and freedom will be further strengthened."
During Mr Sunak's call with Mr Biden the pair discussed the war in Ukraine and the rising power of China, as the US president called the UK his country's "closest ally".
