Halloween fiscal announcement could be delayed, says minister

A senior minister has acknowledged that Rishi Sunak may postpone a fiscal announcement planned for Halloween that will be intended to prevent the markets from entering another downward spiral. James Cleverly, the foreign secretary, said it might no longer be possible to stick to that date for the statement, when significant spending cuts and gloomy predictions about the future of the economy are expected to be laid out. This is because the new government has only recently been established. The long-awaited statement was pushed forward by nearly a month after borrowing costs and currency exchange markets went haywire as a result of the former chancellor Kwasi Kwarteng's mini-budget. The statement was originally intended to be the former chancellor's opportunity to outline his medium-term growth plan. Although Liz Truss fired Kwarteng as she fought to save her collapsing administration, Jeremy Hunt, the new chancellor, pledged to stay to the schedule. This was seen as important to persuade the City that the exchequer could close a budgetary gap of around £70 billion.

However, Cleverly suggested the date could be pushed back, saying it would not be a bad thing if the government had more time.

Asked if the government could delay the Halloween statement, he told BBC Radio 4’s Today program: “It may well do. The prime minister’s only just stepped in. That date was set by the previous prime minister in the anticipation that she would be able to work throughout this period of time on that with the chancellor. Obviously, things have changed.”

He acknowledged there needed to be certainty, and said the statement “may well still come on that day”. But Cleverly argued that if there was “a short delay, in order to make sure that we get this right, I think that that is not necessarily a bad thing at all”.

Hunt is believed to have discussed the significance of regaining trust in the UK economy with the governor of the Bank of England on Tuesday. The Bank is under pressure to increase interest rates at its upcoming meeting of its monetary policy committee on November 3 since inflation remained at a 40-year high of 10.1% in September, which is more than five times the Bank's 2% target. On Wednesday during prime minister's questions in parliament, Sunak is likely to be questioned about the potential postponement of the Halloween fiscal statement. Given that Hunt has undone many of Truss's planned tax cuts, the budget black hole is now anticipated to be less than half the original projection of £70 billion. Sunak has cautioned against making "tough decisions," but he has also emphasized that he will do it with compassion.