The new British Prime Minister, Rishi Sunak, has postponed until November 17 the presentation of the fiscal plan to reduce the public debt scheduled for Monday, an announcement after the first Council of Ministers that he chaired.
According to a summary of the meeting released by the cabinet, Sunak argued that it is “important to reach the right decisions and that there is time for those decisions to be confirmed” with the other ministers.
The so-called Autumn Declaration will set out how the British Executive intends to “put public finances on a sustainable basis and ensure that the debt is reduced in the medium term”.
This intervention will be accompanied by projections from the Office of Budget Responsibility [Office for Budget Responsibility]independent body, on the economy and the impact on public debt.
The presentation of the fiscal plan had been advanced from November 23 to October 31 by former Finance Minister Kwasi Kwarteng due to the volatility of the financial markets.
The date was chosen at the time to take place before the meeting of the Monetary Policy Committee of the Bank of England on November 3, in which a new rise in interest rates to curb inflation will be discussed.
Britain posted an inflation rate of 10.0% in September, the highest in 40 years, and the central bank is expected to raise its benchmark interest rate again from the current 2.25%.
Speaking to reporters today, current Finance Minister Jeremy Hunt argued that changing the date was prudent and that the decision was discussed with Bank of England Governor Andrew Bailey.
Hunt stressed that the Government’s main concern is “to restore confidence that the United Kingdom is a country that pays its bills” and stressed that the fiscal plan “will show a reduction in debt in the medium term.”
According to the Cabinet summary, Rishi Sunak reiterated that he would prioritize economic stability and fiscal sustainability and that “this would require some very difficult decisions.”
However, he promised that the government will act “with compassion, protecting the most vulnerable” and continue to seek long-term growth.
Rishi Sunak, 42, was appointed Prime Minister by King Charles III on Tuesday, becoming the third Conservative Party leader to take office in seven weeks after Boris Johnson and Liz Truss.
The ex-Minister of Finance was the only candidate for the leadership of the Tories who obtained the necessary support from at least 100 of the 357 Conservative deputies, thus avoiding the vote of the militants.
Sunak is also the youngest head of government since 1783 and the first Briton of Indian descent to hold the post.
Source: TSF
