Rishi Sunak’s delay to the budget could save the UK up to £15billion, with the improvement in the UK’s economic outlook reportedly leading the Prime Minister to rethink some of the proposed tax rises. On Wednesday, the new Prime Minister delayed the medium-term fiscal statement, which was due to be delivered on October 31, until November 17. This will give Mr Sunak and his Chancellor Jeremy Hunt time to rethink the plans.
Analysis from the Resolution Foundation set to be published tomorrow shows that the two-week delay will shrink the gap in public finances by between £10 and £15billion.
This comes as the interest rate paid on Government gilts continues to fall rapidly amid growing confidence in the UK, while the international price of gas has also fallen.
Ministers had been facing an estimated black hole in the Treasury’s finances of around £35billion.
According to the Telegraph, an improving economic picture has left Mr Sunak examining whether some of the drastic measures drawn up for the Halloween statement can now be watered down or cancelled.
Previously, Mr Hunt had warned that “some taxes will go up” while others “will not be cut as quickly as people want”.
High earners were reportedly set to be hit with up to £20billion of tax rises.
Meanwhile, Whitehall departments have already been told to find savings of from 10 to 15 percent each.