The U.K.’s annual budget announcement will be delayed after the new Prime Minister Rishi Sunak took office Monday.
Hannah Mckay | Reuters
LONDON — The U.K.’s fiscal statement will be delayed to Nov. 17 after it was initially brought forward to Oct. 31.
The budget will contain the country’s medium-term fiscal plan to “cut public spending on a sustainable footing, get debt falling & restore stability,” according to a statement by the HM Treasury.
The government’s fiscal statement will be accompanied by an independent forecast from the Office for Budget Responsibility, unlike the so-called mini-budget that sent markets into turmoil on Sept. 23.
Sterling rose to a six-week high as newly-appointed Prime Minister Rishi Sunak met with his cabinet for the first time Wednesday morning and amid speculation the budget statement could be delayed.
The pound was last seen up 0.8% against the dollar at around $1.156.
Sunak will face questions from fellow lawmakers for the first time since taking office at midday.
Sunak became prime minister on Tuesday – Britain’s third in 50 days – following the resignation of predecessor Liz Truss after her financial policies flopped and triggered market mayhem.
The change in prime minister followed a fast-tracked Conservative Party leadership election. The ruling party is battling to stabilize the economy and win back public confidence after seeing a slide in opinion polls and plummeting approval ratings.
Foreign Minister James Cleverly suggested on Wednesday morning that the budget announcement could be delayed.
Cleverly told the BBC that Sunak would work with Finance Minister Jeremy Hunt to “get it right,” and that Hunt wanted to ensure the financial statement “matches his priorities.”
Source link: https://www.cnbc.com/2022/10/26/uk-pm-sunak-delays-highly-anticipated-spending-plan-to-mid-november-.html