Home / World News / UK Treasury chief delays detailing new economic plans until Nov 17
UK Treasury chief delays detailing new economic plans until Nov 17
UK Treasury Chief Jeremy Hunt has delayed a statement on the country's economic affairs until November 17, only a day after the new prime minister took office
British Chancellor of the Exchequer Jeremy Hunt walks outside Downing Street in London (Photo: Reuters)
2 min read Last Updated : Oct 26 2022 | 11:29 PM IST
UK Treasury chief Jeremy Hunt on Wednesday delayed his much-anticipated economic statement until November 17, giving new Prime Minister Rishi Sunak a chance to weigh in on policies meant to stabilise the country's finances after his predecessor's tax-cutting plans triggered market upheaval.
The statement will now include a full budget and analysis of its impact on government debt and borrowing by the independent Office of Budget Responsibility. It was originally set to be announced on Halloween.
“I want to confirm that it will demonstrate debt falling over the medium term, which is really important for people to understand,” Hunt said in a pooled broadcast clip.
“But it's also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.” Hunt's announcement comes a day after Sunak took office, replacing former Prime Minister Liz Truss after she was forced to step down after just six weeks. The pound continued its rally higher on Wednesday on renewed US dollar weakness, breaking above the psychological 1.15 level.
Truss’ decision to announce 105 billion pounds in tax cuts and spending increases without saying how she would pay for them sparked concerns about soaring debt that drove the pound to record lows, fuelled turmoil on bond markets and increased mortgage costs for millions of people.
Financial markets have recovered since Hunt became Treasury chief. The British currency and government bonds held on to recent gains after the economic statement was delayed, suggesting investors are willing to give Hunt time to make sure he agree on the new government's economic policies.
The delay means the Bank of England will have to make its next interest rate decision before it knows the details of the government's tax and spending plans.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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