Barely appointed by Liz Truss, Jeremy Hunt, the new UK Chancellor of the Exchequer announced on Saturday 15 October that “difficult decisions” had to be taken to fix the Prime Minister’s economic plan.
“A chancellor can’t control the markets, but what I can do is show that we can fund our plans on tax and spending, and that will take some very difficult decisions.”Hunt told Sky News.
‘It was a mistake to fly blind’ Chancellor Jeremy Hunt admits there were mistakes in the mini budget and that… https://t.co/8YPIFUD5Qh
Jeremy Hunt has been appointed to replace Kwasi Kwarteng, fired against the backdrop of economic and financial crisis that led to a political crisis in the Conservative Party. This close friend of Rishi Sunak, former Chancellor of the Exchequer of Boris Johnson and opponent of Liz Truss in the campaign for Downing Street, is tasked with taking over the mini-budget announced by his predecessor on September 23 and very badly received by the markets. , a good part of the Conservative Party and the British population.
He felt that “error” had been made in this mini-budget, which allows for massive spending and tax cuts without clear funding. “The Prime Minister acknowledged [ces erreurs]that’s why I’m here”he said, adding that he shared “basic” of its economic project.
“Some mistakes have been made in the last few weeks, that’s why I’m sitting here,” Chancellor Jeremy Hunt says mis… https://t.co/i1FyZvoqHB
“I want to be honest with people: we have difficult decisions to make, the last few weeks have been very difficult”, he insisted during his first public speech as Chancellor of the Exchequer. He specifically announced that “consumption will not increase as much as people would like” and that he would ask “all ministerial departments must be more efficient”. “Some taxes are not being reduced as quickly as people would like”and “some taxes will go up”, he added, referring in particular to the new concession announced by Liz Truss on Friday.
The Prime Minister had to abandon keeping the corporate tax rate at 19%, resigning to keep the increase to 25% as planned by the previous Conservative government. Two weeks ago, she had already had to give up a tax break for the richest households, in the face of the roused bronca, also within the conservative party.
“Convergence of Views”
“It is clear that some parts of our mini-budget went too far and too fast compared to what the markets expected”recognized M.me Truss gave a brief press conference in the early afternoon before announcing her determination to raise corporation tax as planned by the previous Conservative government. But she also told herself “absolutely determined to hold on” his promise of“stronger growth” for the British economy.
Bank of England Governor Andrew Bailey praised Saturday “immediate convergence of views” with the new British finance minister, within the framework of the autumn meetings of the International Monetary Fund in Washington. He said he shared the concern with him “fiscal sustainability”.