Seeking to calm markets, UK's new finance minister to make fiscal statement on economic plans

By Ahmet Gurhan Kartal

LONDON (AA) – Britain’s new finance minister Jeremy Hunt will deliver a statement on Monday laying out measures from the government’s medium-term fiscal plan.

The statement, originally planned for Oct. 31, will aim to calm the markets as it will include big spending cuts, in an about-face from Prime Minister Liz Truss’ pledges during her leadership bid.

“This follows the prime minister’s statement on Friday, and further conversations between the prime minister and the chancellor (of the exchequer Hunt) over the weekend, to ensure sustainable public finances underpin economic growth,” a Treasury statement said.

Truss, who is reportedly fighting for her premiership, as many Conservative MPs are not happy with the economic turmoil, last Friday sacked previous Chancellor Kwasi Kwarteng, replacing him with Hunt.

At the end of Kwarteng’s 38 days in office, Truss had to U-turn from signature policies, including a massive tax cut for high earners on public borrowing. The government had to scrap plans to cut the 45% top rate of income tax and freeze corporate tax

The value of the pound sterling against foreign currencies took a beating in recent weeks, and the Conservative Party is now at least 30 points behind the Labour Party, according to polls.

- Truss hangs on

Truss will meet a group of 100 Tory MPs today to get their backing for her premiership, which may be in danger after the tumultuous run of her first month-and-a-half in office.

A group of senior Tory MPs is reportedly planning to meet on Monday night amid speculation that as many as 100 no-confidence letters have been submitted to the backbench 1922 Committee.

The committee will hold a routine meeting today.

“The prime minister says she is in charge but the evidence this weekend suggests she is in office but not in power,” Labour leader Keir Starmer said, urging Truss to make an urgent statement on Monday.

If Truss is forced to leave office, Defense Minister Ben Wallace is among the figures who could take the Tory helm, according to rumors in the capital.