Support our Nation today - please donate here
News

New Chancellor admits mistakes have been made by Truss administration

15 Oct 2022 4 minute read
Jeremy Hunt. Photo Victoria Jones. PA Images

The new Chancellor has criticised the “mistakes” of the Liz Truss administration in his first interview since taking the job, as he warned of “difficult decisions” to come on tax and spending.

New Chancellor Jeremy Hunt denied that the UK was returning to an austerity era, but admitted that “difficult” decisions needed to be made on spending.

“I don’t think we’re talking about austerity in the way we had it in 2010 when I was also in the Cabinet.

“But we are talking about very difficult decisions in budgets where there is already a great deal of pressure.”

Mr Hunt indicated that tax rises could be coming as he seeks to balance the books and steady the markets after a disastrous few weeks for the Liz Truss administration.

Hunt, who replaced Kwasi Kwarteng as Chancellor on Friday as Liz Truss sacked her friend and ditched a major chunk of her mini-budget in an extraordinary gamble to stay in power, said that mistakes had been made by the Government.

Speaking to Sky News, Mr Hunt said: “There were mistakes. 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 of Budget Responsibility saying that the sums add up.

“The Prime Minister’s recognised that, that’s why I’m here.

“We will have some very difficult decisions ahead. Spending will not rise by as much as people would like and all Government departments are going to have to find more efficiencies than they were planning to.”

Growth paradox

He continued: “Some taxes will not be cut as quickly as people want. Some taxes will go up. So it’s going to be difficult. But as we take those difficult decisions, my priority, our values as a Government, will be to protect families, businesses, who are going through a very challenging time.”

“The fundamental strategy behind it all, which is that we have to solve the growth paradox if we want well-funded public services like the NHS and to keep taxes low and falling, then we have to increase our growth rate. That is absolutely right and I also would like to be able to cut corporation tax.”

But on his first full day in office as Chancellor, Mr Hunt declined to give any specific commitments ahead of the fiscal statement on October 31.

“I’m not going to make any specific commitments about specific departments now, or indeed on the tax side about specific taxes because we have to look at these things in the round. And we have to make sure as we take these very difficult decisions, we’re honest with people about the situation we face.”

Clean slate

Asked on BBC Radio 4’s Today programme how long Ms Truss would remain Prime Minister, he appeared to rule out any early election and said that Liz Truss would be “judged” by her successes over the next 18 months.

He insisted that his party was united “around the most important issues” and said: “I think what the country wants now is stability. She has been Prime Minister for less than five weeks and I would just say this – I think that she will be judged at an election.”

But asked if he now has a “clean slate” on the mini-budget and if he could change elements of the plan, Mr Hunt said: “Yes. And the fundamental thing the Prime Minister wants me to do and I need to do is to be completely honest with the country.”

Former Welsh secretary, John Redwood MP offered an early warning to the new Chancellor Jeremy Hunt about his tax and spending plans.

Tweeting on Saturday morning, Mr Redwood said: “You cannot tax your way to higher growth. If you tax too much you end up borrowing more as you have a worse slowdown.”


Support our Nation today

For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.

Subscribe
Notify of
guest

4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
George Thomas
George Thomas
1 month ago

“You cannot tax your way to higher growth. If you tax too much you end up borrowing more as you have a worse slowdown.”

A tax could redistribute finances to provide free bus travel which in turn would see people in city centers more often spending money, fewer people in cars helping the environment and making it easier for people to travel into offices which was very important to Tories during pandemic.

Y Tywysog Lloegr a Moscow
Y Tywysog Lloegr a Moscow
1 month ago

Given that Jammy C Hunt is inexplicably seen as a “moderate” Tory in comparison to Lizard being the darling of the elderly and extreme right, and given that Jeremy has twice campaigned in the biannual Tory Purge events to become PM … do you think he is “admitting” truss made mistakes? Or pointing out Truss made mistakes to highlight her incompetence, in order to unseat her and Nick her job? I mean he’s a Tory, so underlying every thing he says or does, are personal, selfish and nasty motives. Like all Tories. Well it will be a fun two weeks… Read more »

Last edited 1 month ago by Y Tywysog Lloegr a Moscow
hdavies15
hdavies15
1 month ago

He’s a nasty box of tricks for sure and if he sees a half break he’ll be through it and Limp Liz will be flat on her backside and out of her job. The guy is a real snake so best that he is within that party and able to assist further with its downward spiral.

adopted cardi
adopted cardi
1 month ago
Reply to  hdavies15

well said, and it would be laughable, if it wasn’t so serious, to see the history of the man who “championed” the NHS being completely re written. Another good reason for Welsh independence.

Our Supporters

All information provided to Nation.Cymru will be handled sensitively and within the boundaries of the Data Protection Act 2018.