The new Prime Minister of the United Kingdom, Rishi Sunakand Minister of Economy, Jeremy Huntannounced that the plan to repair the country’s public finances, initially scheduled for October 31, has been delayed until November 17.
The statement will contain the UK’s medium-term fiscal plan “to put public spending on a sustainable footing, achieve debt reduction and restore stability”as reported by the Treasury Department on its Twitter account.
Sunak, who replaced Liz Truss After her brief spell as prime minister descended into chaos, she assembled her cabinet for the first time on Wednesday, a day after taking power on a promise to fix her predecessor’s mistakes and stabilize the economy.
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Sunak’s agenda highlights the preparation of a tax presentation, highly anticipated by the financial markets.
The plan is expected to define how the government will cover a budget deficit of up to 40 billion pounds ($45.88 billion).
“What we want to do is make sure we get it right. If that means a short delay, to make sure we get it right, I think that’s not necessarily a bad thing at all,” the British foreign secretary had said. james cleverly.
Investors did not seem fazed by the potential delay. The pound sterling rose almost 1% against the dollarextending its recent rally, and British government bond prices were little changed.
The UK’s financial credibility suffered last month when Truss announced a unfunded tax cut programtriggering a bond market crash so severe that the Bank of England had to step in and Truss was forced to back down.
As Britain’s third prime minister so far this year, Sunak faces an overwhelming list of problemsamong which is what he himself called a “deep economic crisis” and the coming together of a fractured party whose reputation has been shattered by months of scandal and bickering.
It began on Tuesday with the confirmation of Jeremy Hunt as finance minister. Hunt was recruited last week by Truss to reverse his tax cut plans and calm financial markets, which has largely worked so far.
Furthermore, Sunak has formed a cabinet with a mixture of all the political factions of the Conservative Party.
Her decision-making was immediately criticized by the opposition Labor Party, which highlighted the lawmaker’s reinstatement Suella Braverman as Home Secretary less than a week after she was sacked by Truss for a security breach.
(With information from Reuters)
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