Jeremy Hunt, the new finance minister, promises “tough decisions”

Just appointed by Liz Truss, Jeremy Hunt, the new British Finance Minister announced on Saturday October 15 that “difficult decisions” they were going to have to be taken to rectify the Prime Minister’s economic plan.

“A chancellor cannot control the markets, but what I can do is show that we can finance our plans in taxes and spending and that will require very difficult decisions.”Hunt told Sky News.

Jeremy Hunt has been appointed to replace Kwasi Kwarteng, sacked in a context of economic and financial crisis leading to a political crisis within the Conservative Party. This close friend of Rishi Sunak, Boris Johnson’s former Finance Minister and Liz Truss’s opponent in the Downing Street campaign, has the mission of taking over the mini-budget announced on September 23 by his predecessor and very badly received by the markets. , much of the Conservative Party and the British population.

he felt that ” mistakes “ had been done in this mini-budget that provides for massive spending and tax cuts with no clear funding. “The prime minister acknowledged [ces erreurs]That is why I am here”he said, adding that he shared the “fundamentals” of your financial project.

“I want to be honest with people: we have difficult decisions to make, the last few weeks have been very difficult”, he insisted during his first public speech as Finance Minister. In particular, he announced that “Spending will not increase as much as people would like” and what was I going to ask “all ministerial departments to be more efficient”. “Some taxes will not be reduced as fast as people would like”Y “they will increase some taxes”, he added, alluding in particular to the new concession announced Friday by Liz Truss.

The Prime Minister had to give up maintaining the corporate tax rate at 19%, resigning herself to maintaining the 25% increase planned by the previous Conservative government. Two weeks ago, she had already had to abandon a tax cut for the richest households, in the face of anger, even within the Conservative Party.

“Convergence of views”

“It is clear that some parts of our mini-budget went too far and too fast compared to what the markets expected”acknowledged Truss at a brief news conference in the early afternoon, before announcing that she was determined to raise corporate tax as planned by the previous Conservative government. But she also told herself “absolutely determined to hold on” his promise to“stronger growth” for the UK economy.

The Governor of the Bank of England, Andrew Bailey, on Saturday praised the “immediate convergence of points of view” with the new British finance minister, in the framework of the autumn meetings of the International Monetary Fund in Washington. She said that she shared with him the concern for the “fiscal sustainability”.

Also read: Article reserved for our subscribers In the United Kingdom, the dismissed Chancellor of the Exchequer, Liz Truss adrift

The world with AFP

Dennis Alvarado

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