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Jeremy Hunt, widely seen now as the most powerful figure in Government, used a series of broadcast interviews on Saturday morning to signal that Ms Truss’s immediate economic plan is now defunct as he suggested that tax rises could form part of a painful fiscal package designed to restore market confidence in the UK. Mr Hunt, a former foreign secretary, was parachuted into Number 11 to replace Kwasi Kwarteng in a bid to restore order to Ms Truss’s ailing administration. In his first full day in office, he warned of “difficult decisions” to come as he suggested that taxes could rise and budgets – including on health and defence – would likely be squeezed further in the coming months.
Ms Truss on Friday sacked her friend and chancellor Kwasi Kwarteng and ditched her commitment to drop the planned rise in corporation tax from 19 percent to 25 percent, after three weeks of turmoil on the financial markets in the wake of Mr Kwarteng’s £43 billion mini-budget tax giveaway.
Mr Hunt, twice a Tory leadership contender, wasted no time in criticising the mini-budget but endorsed the “fundamentals” of the push for growth.
He told Sky News: “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.
“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.”
READ MORE: ‘She will be judged at an election’ Hunt talks Tory Party division
Appearing to rule out an early election, Mr Hunt repeatedly insisted that voters now wanted stability and in 18 months’ time would be able to “judge” Ms Truss at the ballot box.
But Mr Hunt’s comments may only add to the sense among some Tory MPs that Ms Truss is increasingly powerless in Downing Street, with her party split about its next steps.
At a brief news conference in Downing Street on Friday, the Prime Minister dismissed calls for her resignation, saying she is “absolutely determined to see through what I have promised”.
“It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission right now has to change,” she said.
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