LONDON (AP) 鈥 U.K. Treasury chief Jeremy Hunt on Wednesday delayed his much-anticipated economic statement until Nov. 17, giving new Prime Minister Rishi Sunak a chance to weigh in on policies meant to stabilize the country鈥檚 finances after his predecessor鈥檚 tax-cutting plans triggered market upheaval.
The statement will now include a full budget and analysis of its impact on by the independent Office of Budget Responsibility. It was originally set to be announced on Halloween.
鈥淚 want to confirm that it will demonstrate debt falling over the medium term, which is really important for people to understand,鈥 Hunt said in a pooled broadcast clip. 鈥淏ut it鈥檚 also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.鈥
Hunt鈥檚 announcement comes a day after Sunak took office, replacing former Prime Minister Liz Truss after she was after just six weeks.
Truss' decision to announce 105 billion pounds ($116 billion) in tax cuts and spending increases without saying how she would pay for them sparked concerns about soaring public debt that , fueled and increased mortgage costs for millions of people.
Financial markets have recovered since Hunt became Treasury chief two weeks ago and threw out most of Truss鈥 economic plan. 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 and Sunak agree on the new government鈥檚 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鈥檚 tax and spending plans. The for an eighth consecutive meeting on Nov. 3 as it tries to rein in inflation that is running at a .
Hunt said he discussed the delay with Bank of England Gov. Andrew Bailey on Tuesday night.
鈥淗e understands the reason for doing that, and I鈥檒l continue to work very closely with him,鈥 Hunt said.
The government is trying to restore its economic credibility and rebuild investor confidence as it faces a , the fallout from the and the lingering effects of the COVID-19 pandemic. Hunt has said that doing so will require both tax increases and spending cuts.
Delaying the budget statement is the best way to ensure that the decisions the government makes 鈥渁re ones that stand the test of time and give us the best chance of giving people security over their mortgages, over their jobs, over the cost-of-living concerns that everyone has,鈥 Hunt said.
When he took charge Tuesday, , as well as the skepticism of a British public alarmed by the state of the economy and that has chewed through two prime ministers in as many months.
He pledged to tackle economic issues head on.
鈥淚 fully appreciate how hard things are,鈥 Sunak said outside the prime minister鈥檚 official residence at 10 Downing Street. 鈥淎nd I understand, too, that I have work to do to restore trust after all that has happened. All I can say is that I am not daunted.鈥
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