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Jeremy Hunt warns of making ‘difficult decisions’ on spending and tax – as he admits government went ‘too far, too fast’ | Politics News


Jeremy Hunt admits the government has gone “too far, too quickly” and that he will have to make some “very difficult decisions” on spending and taxes to get the economy back up and running.

Before, new prime minister admit it there “was a mistake” in the small budget of Liz Truss and Kwasi Kwarteng in an interview with Sky News.

But in an apparent attempt to restore confidence in the government’s handling of the economy, Mr Hunt released a statement on Saturday night saying his focus was “growth underpinned”. by stability”.

“The drive to grow the economy is right – it means more people can get good jobs, new businesses can thrive and we can ensure world-class public services. But we’ve gone too far, too fast,” he said.

He appeared to warn the public that this would not be an easy path, saying the government must “be honest with the people”.

“We’re going to have to make some very difficult decisions both in terms of spending and taxes to get the debt down, but our primary concern when making these decisions is how to protect and help.” Families, businesses and people are struggling,” he said.

“I will lay out clear and robust plans to make sure government spending is as efficient as possible, make sure taxpayer money is well spent, and we have tight control over our finances.” his own justice.”

Mr Hunt was appointed as the new prime minister on Fridayafter Mr. Kwarteng was fired after just 38 working days.

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Can Jeremy Hunt save Liz Truss?

While some Tory MPs hailed the new appointment as “an experienced pair of hands”, others questioned why Mr Kwarteng was the one to leave as he was pursuing the policies Ms. Truss endorsed. in his leadership campaign.

Meanwhile, the Sunday Times reported that Mr Hunt would delay a plan to reduce the basic tax rate by 1p for a year after the country’s financial watchdog warned that the public finances were in a bad state. worse than expected.

Interest rates soar

It came as Bank of England (BoE) says interest rates will have to go higher than initially hoped in the face of inflationary pressures.

In August, the Bank said it expected the inflation rate to peak at 13% this year – and stay above 10% for several months before falling.

But now, BoE governor, Andrew Bailey, says the reality of inflation may require a stronger interest rate response from the central bank.

Jeremy Hunt and Andrew Bailey.  Pic: HM Treasury
Picture:
Jeremy Hunt and Andrew Bailey. Pic: HM Treasury

Mr Bailey said he spoke to Mr Hunt on Friday and had a “mind meeting” on the issue of “fiscal sustainability”.

In response to a question in Washington, he said: “I can tell you that I spoke to Jeremy Hunt, the new prime minister, yesterday. I can tell you that there was a very clear meeting. and immediately between us about the importance of fiscal sustainability and the importance of taking measures to make that happen.”

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He continued: “It is not appropriate for me to bind his choices but the message is very clear that I am going to give it and it is a clear message to everyone, including a clear to the market.

“I can tell you there was a very clear and immediate meeting about the importance of stability and sustainability.”

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Can Jeremy Hunt save Liz Truss?

‘Mistakes’ in small budgets

Reflecting on the government’s recent small budget, Mr Hunt told Sky News it was “wrong for us to demand tough decisions across the board on taxes and spending to cut the tax rates of the rich”. best”.

He added that the failure to match the “fiscal event” with an Office of Budget Responsibility economic forecast, which many say has thrown financial markets into turmoil.

On tax cuts, he said: “We’re not going to have the rate of tax cuts we’ve been expecting and some taxes will go up.”

Asked if this would mean a return to austerity, he replied: “I don’t think we’re talking about austerity the way we were in 2010. But we’re going to have to make tough decisions about both spending and taxes.”

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