Jeremy Hunt

2022 - 10 - 15

Post cover — Image courtesy of "BBC News"

Who is in charge? Liz Truss or Jeremy Hunt? (BBC News)

The new chancellor has junked the prime minister's economic strategy in 24 hours, writes Laura Kuenssberg.

One former minister said there had been a "total seepage of power and authority" and she is on her way out in either weeks or months. Believe the polls and Ms Truss' start in office has been an epic disaster from which it is hard to see a return. Boris Johnson and Theresa May survived far, far longer than many of their colleagues had hoped. But that arithmetic won't be pretty - public spending cuts are on the way and taxes could rise too. And yet, very often, it does. But has she killed off what political authority she had left and handed it to someone else?

If Jeremy Hunt is to be Truss's saviour, he needs more than austerity ... (The Guardian)

Tax-cut U-turns won't be enough to balance the books, so the new chancellor will look at cutting public service budgets. But there is an alternative.

There is a way out for Hunt, at least in the short term. The health service, social care, the defence budget and education were going to be protected under Sunak’s tax raising plans. This would protect disabled people and others who might lose out under such a scheme. Jeremy Hunt is unlikely to give his name to a new economic model or ground-breaking method of boosting growth. [Kwasi Kwarteng](https://www.theguardian.com/politics/kwasi-kwarteng) in his mini-budget, will go ahead as the first of many policy U-turns to be announced in a full-scale budget a fortnight tomorrow. [Office for Budget Responsibility](https://www.theguardian.com/business/office-for-budget-responsibility), the Treasury’s independent forecaster, will want to see a much larger shift in policy to close a £60bn gap in public spending that has opened up since it last judged the government’s finances back in March.

Defence Secretary Ben Wallace could resign if Jeremy Hunt scraps ... (Sky News)

Defence spending had been set to rise to 3% of GDP by 2030 - but Chancellor Jeremy Hunt refuses make that commitment.

Pressed on how he was leaving open the possibility of the 3% defence spending pledge not being delivered by 2030, Mr Hunt said: "I am leaving open all possibilities this morning. That is inexcusable and also needs to change. He continued: "The long-term ability to fund an increase in defence spending will depend on stability in the economic situation and a healthily growing economy." Mr Hunt replied: "We do need to increase defence spending, but I can't make a promise to you here and now about the timings of that." Mr Wallace, one of the most experienced and well-regarded members of the embattled prime minister's cabinet, has fought hard over the past three years to secure much-needed increases in defence spending at a time of growing security threats. The UK's new chancellor has raised the possibility of ditching a key pledge by Liz Truss to boost defence spending - a move that would likely be a resigning matter for her defence secretary, Ben Wallace.

Jeremy Hunt says difficult decisions ahead after Truss 'mistakes' (The Guardian)

New chancellor vows to be 'completely honest with country' amid rumours PM has only weeks left in role.

But we are talking about very difficult decisions in budgets where there is already a great deal of pressure.” Hunt, twice a Tory leadership contender and a former foreign secretary, said: “We will have some very difficult decisions ahead. Some taxes will go up … It was a mistake, when we’re going to be asking for difficult decisions across the board on tax and spending, to cut the rate of tax paid by the very wealthiest. “It was a mistake to fly blind and to do these forecasts without giving people the confidence of the Office for [replacing Kwasi Kwarteng](https://www.theguardian.com/politics/2022/oct/14/jeremy-hunt-chancellor-surprising-return) on Friday, the former health secretary signalled he would have a “clean slate” when it came to the budget, and vowed to be “completely honest with the country” amid rumours that Truss has only weeks left as prime minister.

Jeremy Hunt warns of spending cuts in bid to restore UK economic ... (Financial Times)