London Daily

Focus on the big picture.
Friday, Mar 06, 2026

Liz Truss’ new chancellor signals he could junk more of her economic plan

Liz Truss’ new chancellor signals he could junk more of her economic plan

Jeremy Hunt vows to protect ‘the most vulnerable people’ as Conservative MPs vent frustration.
Jeremy Hunt, the man brought in to save Liz Truss' floundering premiership and calm spooked markets, is "not taking anything off the table" when it comes to rethinking the government's economic policies.

In a round of broadcast interviews Sunday, Hunt — appointed as the U.K.'s top finance minister Friday after Truss sacked Kwasi Kwarteng — left the door open to fresh about-turns on the debt-funded, tax-cutting promises that helped Truss become Conservative leader just weeks ago.

“We are going to have to take some very difficult decisions, both on spending and on tax," Hunt told the BBC’s Laura Kuenssberg. “Spending is not going to increase by as much as people hoped, and indeed we're going to have to ask all government departments to find more efficiencies than they had planned, and taxes are not going to go down as quickly as people thought, and some taxes are going go up,” he added.

Hunt — a former Cabinet minister and two-time leadership contender drawn from the center-left of the Conservative Party — is now in an extraordinarily powerful position, having been drafted in to salvage Truss' premiership amid collapsing poll ratings and economic turmoil.

Conservative MPs have been openly criticizing her leadership, amid fevered speculation in Westminster that the party will try to oust her — a move that would likely require a change to the party's internal rules and could put the U.K. on its third prime minister this year.

As well as sacking her chancellor, Truss was on Friday forced to abandon a totemic pledge from her leadership campaign, and she will now increase corporation tax as had originally been planned by the man she defeated in the Tory contest, Rishi Sunak. It followed a humiliating climbdown over plans to cut taxes for Britain's top earners, unveiled in a so-called mini-budget in September that was not subject to the usual scrutiny by Britain's independent fiscal watchdog and prompted an emergency intervention from the Bank of England and a sharp rise in mortgage rates.

Hunt went armed to his BBC interview with a message to voters and nervous MPs. “One thing I want to reassure families who are worried at home is that our priority, the lens through which we're going to do this is as a compassionate Conservative government, and top of our mind when we're making these decisions will be struggling families, struggling businesses, the most vulnerable people and we will be doing everything we can to protect them," he said.

Pressed on the scope of his revised tax-and-spend plans ahead of a fiscal announcement slated for October 31, Hunt told the BBC: "I'm not taking anything off the table."

But he warned Conservative MPs against trying to oust Truss, saying a further leadership contest was "the last thing that people really want."

Elsewhere on Sunday, Tory MPs expressed their anger at the Truss administration. Senior backbencher and education committee chairman Robert Halfon said he was not calling for Truss to go “at this time,” but demanded a “dramatic reset” of her premiership.

The government, he told Sky News, had looked like “libertarian jihadists” who had treated the country like “laboratory mice.” Crispin Blunt, a former minister, became the first to publicly call on Truss to step aside, telling telling Channel 4 News: "U think the game’s up, and it’s now a question as to how the succession is managed."

Amid efforts by some government ministers to paint the U.K.'s economic woes as entirely global, former Bank of England Deputy Governor Charlie Bean told Sky's Sophy Ridge show: “Frankly, I think it's disingenuous to say it's all a global phenomenon; it's not.”

On interest rate rises now facing the U.K., Bean argued that around two-thirds is down to global factors, with the rest a U.K.-specific phenomenon that's developed since the mini-budget. “Basically we've moved from looking not too dissimilar from the U.S. or Germany as a proposition to lend to, to looking more like Italy and Greece,” he said.
Newsletter

Related Articles

0:00
0:00
Close
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
×