UK: New finance minister says government made 'mistakes'

New British finance minister Jeremy Hunt admitted that the new government under Prime Minister Liz Truss had made mistakes. Hunt also suggested that tax increases may be considered as Truss continues to face backlash over her proposed economic plan.

On his first day as the new finance minister, Hunt told Sky News Saturday that the government has made mistakes, referring to the economic plan that involved tax breaks. Hunt assumed the finance minister position after Kwasi Kwarteng was abruptly dismissed following strains in the British financial markets.

“There were mistakes. It was a mistake when we’re going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest,” said Hunt.

“It was a mistake to fly blind and to do these forecasts without giving people the confidence of the Office of Budget Responsibility saying that the sums add up. The prime minister has recognized that, that’s why I’m here,” said Hunt.

In a separate interview with BBC Radio, Hunt also said that he was tasked by Truss to make revisions to the government’s fiscal plans following the backlash received on her tax cut agenda. Hunt’s comments a day after Truss dismissed Kwarteng and scrapped parts of her economic package as she faces backlash in less than 40 days as prime minister since replacing Boris Johnson.

Kwarteng’s fiscal statement back on September 23 led to a backlash in financial markets to the extent that the Bank of England had to intervene to prevent pension funds from getting affected in the midst of rising borrowing costs. While unfunded tax cuts were a big part of Truss’s economic plan, Hunt said tax hikes were an option.

Hunt was appointed as the new finance minister Friday last week and also said that Truss was in charge amidst local media reports of plans to oust Truss. Hunt pledged to restore the United Kingdom’s economic credibility by accounting for the government’s tax and spending plans.

Hunt also said he plans to imp[ose tighter spending controls aside from possible tax hikes. Hunt is expected to unveil the details in a fiscal statement on October 31.