Liz Truss’s new chancellorJeremy Hunt has warned of “difficult” spending cuts ahead after he admitted that “mistakes” were made in last month’s mini-Budget.
In a move that risks inflaming the Tory right, he also hinted there could be further tax rises ahead as he works to balance the Treasury books.
He twice said that “some taxes will go up” in his first interview in the post, just hours after he was given the job.
And he suggested the planned 1p cut to income tax could be dumped. He said he “very much” hoped the government could keep the measure, but he said that he would not make a decision before he had looked at everything in the round.
Mr Hunt became chancellor after Ms Truss brutally sacked her first choice, Kwasi Kwarteng in a bid to save her flailing premiership.
The prime minister also announced a U-turn on her flagship plans to cut the rate of corporation tax.
On Sky News, Mr Hunt denied that the UK was returning to an era of austerity, 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,” he said.
“But we are talking about very difficult decisions in budgets where there is already a great deal of pressure.”