Bank of England Governor Andrew Bailey said he spoke to new Chancellor Jeremy Hunt on Friday and had a “meeting of views” on the issue of “fiscal sustainability”.
Responding to questions in Washington, he said: “I can tell you that yesterday I spoke with Jeremy Hunt, the new chancellor. I can tell you that there was a very clear and immediate agreement between us on the importance of fiscal sustainability and the importance of taking steps to do so.”
He continued: “It is not appropriate for me to restrict the choices that he makes, but the very clear message that he would give is a clear message to everyone, including a clear message to the markets. I can tell you that there is very clear and immediate agreement on the importance of stability and sustainability.”
Earlier on Saturday, Hunt warned that there will be “difficult decisions” ahead on taxes and spending.
Speaking to Sky News, Hunt, a two-time Conservative leadership contender, wasted no time criticizing the mini-budget but backed the “fundamentals” of the growth push.
He added: “Spending won’t go up as much as people want and there will be more efficiencies to be found and we won’t have the speed of tax cuts that we hope for, and some taxes will have to go up. That is the reality of the very challenging situation we face.”
While ruling out austerity-like cuts, Hunt said the government will have to make “very difficult decisions” after the fallout from the mini-budget to restore stability.
Jeremy Hunt admits ‘mistakes have been made’
Jeremy Hunt, who replaced Kwasi Kwarteng as chancellor on Friday as Liz Truss sought to salvage her prime ministerial post, said the government had made mistakes.
He told Sky News: “There were mistakes. It was a mistake when we are going to ask for tough decisions across the board on taxes and spending to lower the tax rate paid by the wealthiest.
“It was a mistake to fly blind and make these forecasts without giving people the confidence of the Office of Budget Responsibility by saying that the sums add up.
“The prime minister recognized it, that’s why I’m here.”
Jeremy Hunt hints at tax hikes
Jeremy Hunt, the new Chancellor, has indicated that tax increases could be coming as he seeks to balance the books and stabilize markets after a disastrous few weeks for the Liz Truss administration.
He told Sky News: “We will have some very difficult decisions ahead of us. Spending will not increase as much as people would like and all government departments will have to find more efficiencies than they planned.”
“And some taxes won’t come down as fast as people want.
“Some taxes will go up. So it’s going to be difficult. But while we make those difficult decisions, my priority, our values as a Government, will be to protect families, businesses, who are going through a very difficult time.
Conservative MP John Redwood warns “you can’t tax your way to more growth”
Thatcherite Tory MP John Redwood gave new Chancellor Jeremy Hunt an early warning about his fiscal and spending plans.
Tweeting on Saturday morning, Redwood said: “You can’t tax your way to further growth. If you tax too much, you end up taking on more debt because you have a worse slowdown.”
Jeremy Hunt says his predecessor made ‘two mistakes’
Jeremy Hunt said his predecessor, Kwasi Kwarteng, made “two mistakes” as chancellor.
Speaking on the BBC’s Today programme, he said it was “wrong” to cut the top income tax rate for high earners and announce those plans without a forecast from the Office for Budget Responsibility.
The Foreign Minister indicates that he has a ‘clean slate’ on the mini-budget
Foreign Minister Jeremy Hunt said he will have a “clean slate” when it comes to the mini-budget.
Appearing on BBC Radio 4’s Today programme, he paid tribute to his predecessor Kwasi Kwarteng for the energy price guarantee.
But when asked if he now has a “clean slate” on the mini-budget and if he could change elements of the plan, Hunt said: “Yes. And the fundamental thing that the Prime Minister wants me to do and that I have to do is to be completely honest with the country.”
He said he will meet with Treasury officials later on Saturday and with Liz Truss on Sunday.
Jeremy Hunt: Liz Truss has heard the criticism of the mini-Budget
Jeremy Hunt insisted that Liz Truss had “listened” after the crisis unleashed by her mini-budget, as the new chancellor said that people do not want “more political instability”.
He told BBC Radio 4’s Today programme: “She has listened and I think you want a prime minister who is prepared to listen in these situations and what she wants to do is boost the economy in a way that protects families and businesses. through a very difficult period.
“And I think the last thing people want right now is more political instability.”
Tobias Ellwood says Hunt is a ‘wise inclusion’ for government
Senior MP Tobias Ellwood joined those who welcomed the installation of Jeremy Hunt as chancellor, as he indicated that the Conservative whip had been restored to him.
In a reference to his losing the party whip after he failed to support the Government in a vote of confidence over the summer while abroad, Ellwood tweeted: “Glad to be out of the naughty step (Odessa) and back on Pty when we get into this. Restart.”
Ellwood said Hunt was a “wise inclusion” in the government.
“We thrive when we govern as ‘one nation’ conservatives harnessing a coalition of talent, solving economic crises through sound money and fiscal responsibility.”
Sir Keir Starmer accuses Truss of ‘grotesque chaos’
Labor leader Sir Keir Starmer accused Liz Truss of “grotesque chaos” in the sacking of his chancellor Kwasi Kwarteng.
Delivering a speech in Barnsley after a day of turmoil in Westminster, Sir Keir noted the “grotesque chaos of a Conservative prime minister handing out redundancy notices to her own chancellor”.
Sir Keir said there was “no historical precedent” for the current situation facing Liz Truss and her government.
The Labor leader said: “There is no historical precedent for what they have done to our economy. Britain has faced financial crises before, but the prime ministers and chancellors who struggled with them acted quickly.
“When their policies hit the rocks of reality, they took decisive action.
“But this lot, not only brought down the British economy, it also held on as they caused the pound to sink. They clung on as they brought our pensions to the brink of collapse.
“They held on while pushing the British public’s mortgages and bills through the roof.
“They did all of this, all of the pain our country is facing right now is because of them.”
Sir Keir Starmer calls for tax return to be filed
Asked if the tax return should be filed, Labor leader Sir Keir Starmer told the PA news agency: “Yes. The crisis we are facing right now is a crisis made in Downing Street and the damage has already been done and it is very, very difficult to reverse: you cannot reverse a car accident.
“Changing your chancellor does not undo the damage that has already been done, so the declaration needs to be brought forward, we need to reverse the kamikaze budget.
“But more than that, after 12 years of conservative failure, we really need a change of government. Playing with the people at the top of the Tory party is not the change we need right now.
“Sometimes this is the aftermath of some terrible world event, but this is self-inflicted, done in Downing Street, and everyone knows it.”
Miriam Margolyes insults Radio 4 when talking about Jeremy Hunt
Miriam Margolyes has told how she wanted to curse new chancellor Jeremy Hunt when she met him in a BBC radio studio just a day after he took up his last government post.
Read our story here.
Miriam Margoyles swears live on the radio
