Former health and foreign minister Jeremy Hunt was appointed Britain's chancellor of finance, succeeding Kwase Quarting, who was sacked on Friday, as part of a new pivotal change to Prime Minister Liz Terrace's tax cut plan, in an attempt to reassure financial markets.
Britain's new finance minister Jeremy Hunt said on Saturday that some taxes will be raised, while government spending will rise less than previously planned, and warned that tough decisions would need to be made to restore the credibility of Britain's fiscal policy.
With financial markets in turmoil, Prime Minister Liz Trace Kwasi Quarting sacked the post of finance minister and scrapped parts of their controversial economic program on Friday, in a bid to survive less than 40 days in office politically.
Terrace announced a corporate tax increase, dropping its plan to keep it at current levels.
Although deep tax cuts were a key item in Truss' original plans, Hunt said tax increases were likely to be announced.
"We're going to have some very difficult decisions ahead of us," he told Sky News.
"What the people and markets want and the country needs right now is stability," Hunt added. "No minister can control the markets, but what I can do is show that we can pay our taxes and stick to our spending plans, and that's going to take some very difficult decisions in terms of both spending and taxation." ".
"Spending will not go up as much as people want, all government agencies will have to increase their efficiencies more than they had planned. Some taxes will not be reduced as quickly as people want, some taxes will increase. It will be difficult," he said.
A new fiscal policy announced by Quarting on September 23 triggered such a violent reaction in financial markets that the Bank of England had to step in to protect pension funds from falling into disarray as borrowing costs soared.
Hunt said he agrees with Truss' basic approach to seeking to stimulate economic growth, but the approach she and Kwarting have taken on it has not worked.
The European Union records a large trade deficit in light of the energy crisis
In August, the eurozone recorded its largest trade deficit since 2015, as the import bill rose as energy prices rose. It is a decline for the tenth month in a row in a major shift for the trade bloc, which usually achieves a large trade surplus. Know the details.
Official reports revealed Friday that the euro zone recorded its largest trade deficit in August since 2015, as the import bill rose as energy prices rose.
The European Union's statistics office (Eurostat) indicated that the balance of trade goods for the euro area fell in August by about 51 billion euros, which is the highest deficit recorded since Lithuania joined the union in 2015 to become the nineteenth member.
The deficit has risen since July to reach 34 billion euros, declining for the tenth consecutive month in a major shift for the trading bloc, which usually achieves a large trade surplus.
The inflated European energy import bill led the union to shift from a surplus to a trade deficit.
In August, eurozone exports of goods rose 24% year-on-year to €231.1 billion, roughly in line with July's export volume. However, the increase in exports was less than the import bill, which rose by 53.6% year-on-year to €282.1 billion.