New UK finance minister talks tough decisions

The new British finance minister, Jeremy Hunt, announced on Saturday (15) that “difficult decisions” will have to be taken to rectify the government’s economic plan.

“A finance minister cannot control the markets, but what I can do is show that we can finance our projects with taxes and spending and that will lead to very difficult decisions,” Hunt told Sky News the day after the inauguration.

Conservative Prime Minister Liz Truss on Friday named Hunt to replace Kwasi Kwarteng, sacked amid the economic and financial crisis.

Hunt is a former foreign and health minister and close to Rishi Sunak — Truss’ opponent in the Downing Street access campaign. He must assume the budget announced on September 23 by his predecessor and very poorly received by the markets and by a good part of the Conservative Party and the population.

The new minister admitted that “mistakes” were made in this budget, which provides for important public aid and tax cuts, but nothing that finances it.

“The Prime Minister acknowledged [esses erros]that’s why I’m here,” he said, adding that he agreed with the basis of his economic plan.

“I want to be honest with people: we have to make difficult decisions, the last few weeks have been very difficult,” he insisted, in his first public statements as finance minister.

Hunt announced that “some taxes won’t be cut as fast as people would like. Some will go up.”

The Conservative leader, in power for just over a month, had to step back and agree to raise the corporate tax, a previous government measure she was determined to abolish.

Two weeks ago, one of its most controversial measures was the removal of the maximum rate, 45%, for income above 150 thousand pounds (US$ 170 thousand) a year.