London: Britain’s new Prime Minister Rishi Sunak plans to defer announcement of a plan to put in order the country’s public finances until November 17, two and a half weeks later than previously planned, a report in The Tribune, Chandigarh, says.
The keenly-awaited announcement was to be made on Wednesday, October 26.
Sunak has said: “My record is, when times are difficult in this country I will always protect the most vulnerable. We did it during the Covid pandemic and we will do that again.
While this delay, Sunak’s first policy decision since taking over from Liz Truss on Tuesday, October 25, briefly raised British borrowing costs in financial markets, there was no repeat of the panic bond selling caused by Truss’ September tax-cutting plan.
Sunak takes on an economy facing recession at a time when the Bank of England is raising interest rates to tame double-digit inflation. Low growth and rising borrowing costs have worsened the strain on already stretched public finances.
Sunak warned his government would have to take some “very difficult decisions” but assured the people he would also act with compassion while tackling the country’s “profound economic crisis”.
The government is drawing up spending cuts and cancelling tax cuts just as the rising cost of mortgages, food, fuel and heating is squeezing many household budgets to their limits. “I have been honest. We will have to take difficult decisions to restore economic stability and confidence,” Sunak told Parliament, promising to protect the most vulnerable.
Finance Minister Hunt said more time was needed to ensure the new plan took into account new economic forecasts. It is expected to set out how the government will plug a budget shortfall of as much as 40 billion pounds ($46 billion).
Unlike Truss’ plan last month, it will be fully audited by Britain’s fiscal watchdog.
Sunak, the third PM in seven weeks, opened the Cabinet meeting by saying that “economic stability and fiscal sustainability would be at the heart” of his government’s mission.
“Now is the time to get to work and earn the trust of the British people,” he wrote after the first Cabinet meeting.
Foreign Secretary James Cleverly updated the Cabinet on the international situation and the continued threat posed by Russia’s escalation of the war in Ukraine. —
Sunak dials Ukrainian President
Newly appointed UK Prime Minister Rishi Sunak spoke to Ukrainian President Vladimir Zelenskyy and expressed UK’s solidarity and support for the Ukrainian people.
“A privilege to speak to the President of Ukraine, Vladimir Zelenskyy, this evening. Both he and the Ukrainian people can count on the UK’s continued solidarity and support. We will always stand with Ukraine,” Sunak tweeted following the conversation.
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