UK tax and spending plan pushed back by two weekson October 26, 2022 at 10:40 am

A much-anticipated statement for the UK public finances will now be announced two weeks later than planned.

The economic plan was due next Monday, but will now take place on 17 November as a full autumn statement.

Chancellor Jeremy Hunt said the delay would ensure it is based on the “most accurate possible” economic forecasts.

It follows Rishi Sunak’s appointment as prime minister on Tuesday, after a four-day contest to replace Liz Truss as Tory leader.

Speaking to reporters, Mr Hunt said the statement would set out plans to see UK debt “falling over the medium term”.

He is under pressure to reassure investors of the UK’s economic credibility, following financial turmoil after last month’s mini-budget.

After his appointment by Liz Truss, he abandoned almost all of the tax cuts in the mini-budget announced by predecessor Kwasi Kwarteng.

The upgrading of the plan to a full autumn statement suggests wider policy decisions may be announced.

Mr Hunt said he had discussed the delay with the governor of the Bank of England, who “understands” the decision.

The Bank is due to make its next decision on interest rates on 3 November.

I’ve said it before, and here’s another moment where I can say it again: diaries have gone out of fashion at Westminster.

The one date in the diary that had at least a bit if stickability, has become…unstuck…and moved.

The statement scheduled for next Monday will now happen on Thursday 17 November, alongside a full forecast from the Office for Budget Responsibility.

The justification at the top of government for doing this is the markets have stabilised since Liz Truss said she was walking the plank, so there isn’t the urgency to act immediately that there was.

It is also likely to mean those forecasts don’t look quite so gloomy.

Oh, and it’ll give the new prime minister and new-ish chancellor a bit longer to work out quite what they are going to do.