The Government's financial plan to fill a black hole of up to £40 billion has been pushed back until next month as Rishi Sunak prepares to face MPs for the first time as Prime Minister. The Chancellor, Jeremy Hunt, had been due to announce the plan on Monday, October 31, after warning that difficult decisions lie ahead.
But following Mr Sunak becoming Prime Minister on Tuesday (October 25), Downing Street has now announced that this financial plan will be delivered on November 17. Number 10 also said it had been upgraded to a full autumn statement - second only to the full Budget in terms of its importance.
Despite sacking several of Liz Truss' cabinet, Rishi Sunak chose to keep Jeremy Hunt as the Chancellor as he pledged that economic stability and confidence would be at the heart of his Government. The Mirror reports that Mr Hunt was due to meet cabinet ministers one by one to draw up cuts to public services last week.
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Mr Hunt now says it is "prudent" to delay his fiscal announcement - adding that it would be "upgraded to a full autumn statement". He told broadcasters: "I want to confirm that it will demonstrate debt falling over the medium term which is really important for people to understand.
"But it's also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances. And for that reason the Prime Minister and I have decided it is prudent to make that statement on November 17 when it will be upgraded to a full autumn statement."
Mr Hunt said he discussed the move with Bank of England Governor Andrew Bailey on Tuesday night (October 25), adding he "understands the reasons for doing that and I'll continue to work very closely with him". Mr Sunak warned there will be "difficult decisions to come" in his first speech in Downing Street but faces an avalanche of warnings and potential Cabinet clashes.
He has appointed Mel Stride, who warned against cutting benefits, to lead the welfare department and Andrew Mitchell, who has slammed foreign aid cuts, as Development Minister. And on Tuesday night he rang Scottish First Minister Nicola Sturgeon, something which Liz Truss never did whilst in office, who warned him not to cut public services. Ms Sturgeon said she voiced "fear that further austerity will do real damage to people and public services".
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