New UK PM Sunak reconsiders tax rises, major public spending cuts

Agencies | London

The Daily Tribune – www.newsofbahrain.com

British Prime Minister Rishi Sunak is considering tax rises and major public spending cuts, according to The Telegraph.

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 previously planned.

The fortnight delay is expected to shrink the size of the black hole in the public finances by up to 10-15 billion pounds ($11.6 billion-$17.4 billion), the newspaper reported, citing an analysis to be published by the Resolution Foundation think-tank.

The report noted a rapid fall in the interest rate paid on government gilts and a reduction in the international gas price.

It said Whitehall departments have been told to find savings of from 10% to 15% each.

Soon after Sunak became Britain's Prime Minister on Tuesday, he said difficult decisions lay ahead as he looks to cut public spending.

Jeremy Hunt, who was appointed as the finance minister by the former Prime Minister Liz Truss to calm markets roiled by her dash for growth, was re-appointed by Sunak and repeated his warning on Tuesday that "it is going to be tough".

Last week, The Telegraph reported that Hunt was considering up to 20 billion pounds of tax rises in a budget that was previously scheduled for October 31.