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Jeremy Hunt: We need to make difficult decisions Jeremy Hunt: We need to make difficult decisions
(about 2 hours later)
Watch: Chancellor admits mistakes made and some taxes will riseWatch: Chancellor admits mistakes made and some taxes will rise
Watch: Chancellor admits mistakes made and some taxes will riseWatch: Chancellor admits mistakes made and some taxes will rise
Difficult decisions will be needed "across the board" on tax and spending, the new chancellor has said.Difficult decisions will be needed "across the board" on tax and spending, the new chancellor has said.
Jeremy Hunt told the BBC that some taxes will go up, while government spending may need to fall.Jeremy Hunt told the BBC that some taxes will go up, while government spending may need to fall.
He said two mistakes were made in the mini-budget by Kwasi Kwarteng - cutting the top rate of tax and announcing it without an independent forecast. He said he had a clean slate after Prime Minister Liz Truss sacked Kwasi Kwarteng and announced another mini-budget U-turn on a dramatic day.
But he also praised his predecessor for help offered to people struggling with their energy bills. Cutting the top rate of tax and not independently costing measures were mistakes being "put right", he added.
Mr Hunt said he agreed with the prime minister's goal of "solving the growth paradox", but added: "The way we went about it clearly wasn't right and that's why I'm sitting here now." Less than 24 hours into his new role, Mr Hunt was signalling a big shift away from the economic policies of his predecessor and Ms Truss.
Speaking to BBC Radio 4's Today Programme, Mr Hunt said: "Taxes are not going to come down by as much as people hoped, and some taxes will have to go up. She is facing growing pressure from within her party, with serious discussions continuing among MPs about whether she can carry on as PM.
With plans to cut the 45p rate of tax for high earners and corporation tax now both scrapped, Mr Hunt has indicated he plans to implement further changes to September's mini-budget, telling BBC Radio 4's Today Programme he had a "clean slate".
Those changes include hikes to some taxes, as well as potential cuts to public spending, though he refused to outline any details just hours into the job.
"Taxes are not going to come down by as much as people hoped, and some taxes will have to go up," he told the Today Programme.
"I'm going to be asking all government departments to find additional efficiency savings.""I'm going to be asking all government departments to find additional efficiency savings."
Mr Hunt also refused to rule out cuts to NHS spending, as well as whether he will row back on Ms Truss's pledge to increase defence spending to 3% of GDP.
It means all of Ms Truss's flagship policies are now looking uncertain, leaving her position and her "Trussonomics" policies in doubt.
Ms Truss, prime minister for just 39 days, is already facing pressure from within her party following September's mini-budget, which included £45bn worth of tax cuts and sparked turbulence in the financial markets.
On what he described as the two mistakes made in that budget, Mr Hunt said: "It was wrong to cut the top rate of tax for the very highest earners at a time where we're going to have to be asking for sacrifices from everyone to get through a very difficult period.
"And it was wrong to fly blind and to announce those plans without reassuring people with the discipline of the Office for Budget Responsibility (OBR) that we actually can afford to pay for them."
He said both of these were now in the process of "being put right".
This is difficult, Liz Truss admits after major U-turnThis is difficult, Liz Truss admits after major U-turn
Tory MPs turn on Liz Truss after turbulent dayTory MPs turn on Liz Truss after turbulent day
But Mr Hunt, who was appointed as chancellor on Friday after Kwasi Kwarteng was sacked by the prime minister, refused to outline any details for his tax and spending plans. The chancellor made a series of points about the government's mini-budget and discussed possible plans for his new role in his interviews with the BBC:
He told BBC Breakfast he was "not going to make any commitments" and reiterated he was just hours into the job.
However, the chancellor made a series of points about the government's mini-budget and discussed possible plans for his new role:
Mr Hunt said there were two mistakes in the mini-budget - cutting the 45p rate of tax for top earners and announcing the package without independent costingsMr Hunt said there were two mistakes in the mini-budget - cutting the 45p rate of tax for top earners and announcing the package without independent costings
He said he hoped to keep the 1% cut to the basic rate of income tax, but that no decisions had yet been madeHe said he hoped to keep the 1% cut to the basic rate of income tax, but that no decisions had yet been made
He said some taxes will need to go upHe said some taxes will need to go up
He is asking government departments to find "efficiencies", meaning possible cuts to spendingHe is asking government departments to find "efficiencies", meaning possible cuts to spending
He refused to rule out cuts to NHS spending, nor did he rule out row-backs on Liz Truss's pledge to boost defence spendingHe refused to rule out cuts to NHS spending, nor did he rule out row-backs on Liz Truss's pledge to boost defence spending
Mr Hunt's comments come after the government's mini-budget last month, which included £45bn worth of tax cuts, and sparked turbulence in the financial markets.
Addressing mistakes he said were made by the ex-chancellor, Mr Hunt said: "There were two mistakes - it was wrong to cut the top rate of tax for the very highest earners at a time where we're going to have to be asking for sacrifices from everyone to get through a very difficult period.
"And it was wrong to fly blind and to announce those plans without reassuring people with the discipline of the Office for Budget Responsibility (OBR) that we actually can afford to pay for them."
He said both of these were now in the process of "being put right".
Mr Hunt said he would be meeting Treasury officials later and Liz Truss on Sunday.
Jeremy Hunt arriving at the BBC on Saturday
After just 39 days as prime minister, Ms Truss is facing huge pressure from within her party as key elements of the major economic plan she and the former chancellor set out in September have been scrapped.
The prime minister is facing a backlash from Conservative MPs after announcing the government's second U-turn in a month.The prime minister is facing a backlash from Conservative MPs after announcing the government's second U-turn in a month.
Friday's U-turn on plans to cut corporation tax followed an earlier reversal of plans to cut the 45p rate of income tax for the highest earners. She now risks not leading on the economy to ease the markets and also not being the unifying leader the party feels it needs - with many MPs concerned her performance at Friday night's press conference didn't offer them reassurance.
Jeremy Hunt arriving at the BBC on Saturday
At that conference, she described sacking Mr Kwarteng and scrapping another key economic policy as "difficult" and admitted that "parts of our mini-budget went further and faster" than the markets were expecting.
Some MPs have told the BBC that "at least" her predecessor Boris Johnson managed at times to get the morale even of his critics up when things looked bad for them.
Some Tory MPs feel Mr Hunt's appointment has "bought them time". But some who backed Ms Truss during the leadership contest are annoyed at the U-turns on some of her plans.
One Tory MP described the party as being in a "state of despair", but Truss supporter Christopher Chope said "time will tell" if she had done enough to secure her position.One Tory MP described the party as being in a "state of despair", but Truss supporter Christopher Chope said "time will tell" if she had done enough to secure her position.
Asked whether there should be a general election, Mr Hunt told the BBC: "What the country wants now is stability. Those who did not like her policies think she is not fit for the job.
"[Truss] has been prime minister for less than five weeks. When we are judged at a general election, we will be judged by what we deliver over the next 18 months by far more than what's happened over the last 18 weeks." She still has many more fires to fight too on policy - with live rows going on in the party at the moment over possible spending cuts, her plans to bring back fracking, her plans to change planning and housebuilding rules to name but a few.
The PM has described sacking Mr Kwarteng and scrapping another key economic policy as "difficult" and admitted in a short press conference on Friday that "parts of our mini-budget went further and faster" than the markets were expecting. Labour leader Sir Keir Starmer has accused the prime minister of "grotesque chaos" following the sacking of the former chancellor. He is calling for a general election.
Labour leader Sir Keir Starmer accused the prime minister of "grotesque chaos" in her sacking of the former chancellor.
During a speech in Barnsley a day after the upheaval in Westminster, Sir Keir said Ms Truss was "clinging on", arguing that there was "no historical precedent" for the current situation facing her government.During a speech in Barnsley a day after the upheaval in Westminster, Sir Keir said Ms Truss was "clinging on", arguing that there was "no historical precedent" for the current situation facing her government.
He said: "Britain has faced financial crises before but the prime ministers and chancellors who wrestled with them all acted fast. When their policies ran against the rocks of reality, they took decisive action. But Mr Hunt told the BBC that the country needs "stability".
"But this lot, they didn't just tank the British economy, they also clung on as they made they pound sink." "[Truss] has been prime minister for less than five weeks. When we are judged at a general election, we will be judged by what we deliver over the next 18 months by far more than what's happened over the last 18 weeks."