The newly appointed finance minister Jeremy Hunt met with PM Liz Truss at her Chequers country retreat in Buckinghamshire to discuss measures to sort out economic uncertainty after Hunt tore up PM Truss' economic agenda. Hunt, however, did say that Truss is still in charge. He however did not clarify whether he would make any more changes to Truss' mini-budget.
Hunt will announce tax and spending measures on Monday, two weeks sooner than scheduled. Hunt hopes to control a loss of confidence in the government's fiscal plans. “The Chancellor will make a statement later today, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability,” the finance ministry said told Reuters. Hunt will deliver a fuller medium-term fiscal plan as scheduled in October.
Hunt is expected to delay a 1 pence cut in income tax to help plug a black hole in the public finances that had reached £72bn, the Sunday Times reported.
Plans to reduce the basic rate of income tax from 20 per cent to 19 per cent next April will be pushed back by a year, which will also be announced. Hunt is also known to have batted for cutting corporation tax from 19 per cent to 15 per cent.
When Hunt was asked why the people should trust the new Truss-led government, “Because she’s listened. She’s changed. She’s been willing to do that most difficult thing in politics, which is to change tack. What we’re going to do is to show not just what we want, but how we’re going to get there,” he told the Guardian.
Hunt also indicated cuts on defence and health and said that no government department would be immune from 'efficiency savings'. “We’ve haemorrhaged in the opinion polls. The public just can’t understand what has happened. Many of them are frightened about their future and the cost of living. It’s inevitable that colleagues are just, we’re all talking to see what can be done about it,” Hunt added.
