UK faces 50 billion pound fiscal hole, government sources say

British finance minister Jeremy Hunt will seek to fill a 50 billion pound ($57 billion) hole in the country's public finances with around 30 billion pounds of spending cuts and 20 billion in tax rises, two government sources said on Monday.

by | 7 Nov, 2022

Hunt is due to present a fiscal statement to parliament on Nov. 17. He will aim to restore financial market confidence after his predecessor Kwasi Kwarteng’s Sept. 23 tax-cutting plan pushed sterling to a record low against the U.S. dollar and ultimately forced Liz Truss to resign as prime minister.

Britain’s Guardian newspaper reported on Sunday that early drafts of Hunt’s statement included up to 35 billion pounds of spending cuts and 25 billion pounds of tax rises, while on Monday the Financial Times gave figures of 33 billion pounds and 21 billion pounds respectively.

Asked about these estimates, two government sources told Reuters that they were within the right ballpark, but that final figures were subject to change.

Britain’s finance ministry declined to comment on either estimate.

Read more at Reuters

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