British Prime Minister Rishi Sunak pushes back budget plan

British Prime Minister Rishi Sunak has postponed a budget plan due next week, as the new leader got down to business after weeks of political turmoil.

Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt at Downing Street. Picture: AFP

British Prime Minister Rishi Sunak has postponed an eagerly awaited budget plan due next week, as the new leader got down to business after weeks of political turmoil.

Chancellor of the Exchequer Jeremy Hunt – retained in Mr Sunak’s cabinet along with other senior ministers – said Monday’s planned “medium-term fiscal statement” was no longer so pressing.

Instead, there would be a full budget statement on November 17 to lay out the new government’s tax and spending plans, Mr Hunt said.

“Now, we have a new Prime Minister and the prospect of much longer-term stability for the economy,” he said, stressing the new plan would be accompanied by fresh economic forecasts from the Office for Budget Responsibility.

Mr Hunt said he had discussed the delay with Bank of England governor Andrew Bailey. The delay would ensure the budget can “stand the test of time” to give British mortgage holders and businesses more assurance, Mr Hunt said.

The markets were unperturbed by the postponement, suggesting Mr Hunt and Mr Sunak have calmed investor nerves.

AFP