UK’s Rishi Sunak delays plan on public finances until November 17
- PM and finance minister Jeremy Hunt make ‘prudent’ decision, to allow more time to ensure new plan takes into account latest economic forecasts
- Markets react, but the scale of moves is muted compared to the panic bond selling caused by Liz Truss’ September tax-cutting plan
Britain’s new Prime Minister Rishi Sunak on Wednesday delayed the announcement of a keenly awaited plan for repairing the country’s public finances until November 17, two-and-a-half weeks later than originally planned.
The postponement, Sunak’s first policy decision since taking over from Liz Truss on Tuesday, pushed up British borrowing costs in financial markets but by far less than seen in the panic bond selling caused by Truss’s September tax-cutting plan.
Finance minister Jeremy Hunt announced the delay in a televised statement, saying it would take more time to ensure the new plan took into account the latest economic forecasts.
“The prime minister and I have decided that it is prudent to make that statement on the 17th of November,” Hunt said.
The plan is expected to set out how the government will plug a budget shortfall of as much as £40 billion (US$46 billion). Unlike Truss’s plan last month, it will be fully audited by Britain’s fiscal watchdog.
A statement from Sunak’s office said he told his newly assembled cabinet that it was “important to reach the right decisions and there is time for those decisions to be confirmed with cabinet”.
