The British government has delayed its planned fiscal update - dubbed the Halloween budget - until next month, Downing Street has said.
The medium term fiscal plan will now be published on November 17th as an autumn statement – alongside a new set of economic forecasts from the Office for Budget Responsibility.
Britain's chancellor Jeremy Hunt informed his ministerial colleagues of the decision at the first meeting of Rishi Sunak’s new cabinet in Downing Street on Wednesday morning.
Following the meeting, Mr Hunt told broadcasters: “I want to confirm that it will demonstrate debt falling over the medium term which is really important for people to understand.
“But it’s also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.
Prime Minister @RishiSunak & Chancellor @Jeremy_Hunt have agreed the Autumn Statement will be delivered on 17 November with an @OBR_UK forecast. It will contain the UK’s medium term fiscal plan to put public spending on a sustainable footing, get debt falling & restore stability. pic.twitter.com/3wiSAU1iaK
— HM Treasury (@hmtreasury) October 26, 2022
“And for that reason the Prime Minister and I have decided it is prudent to make that statement on November 17 when it will be upgraded to a full autumn statement.”
Mr Hunt said he discussed the move with Bank of England Governor Andrew Bailey on Tuesday night, adding he (Mr Bailey) “understands the reasons for doing that and I’ll continue to work very closely with him”.
He said it is essential to ensure the “very, very difficult decisions” that would be required on tax and spending “stand the test of time”.
“The OBR also want to make sure that their forecasts are the most accurate possible and there have been a lot of changes even in the last 48 hours,” he said.
“And this is my recommendation to the Prime Minister as the best way to ensure that the decisions that we take, these very, very difficult decisions, are ones that stand the test of time and give us the best chance of giving people security over their mortgages, over their jobs, over the cost-of-living concerns that everyone has.
“I’ve demonstrated in the short time that I’ve been Chancellor that I’m willing to take decisions very quickly and I’m willing to make choices that are politically embarrassing if they’re the right thing to do for the country, if they’re in the national interest.
“Now we have a new Prime Minister and the prospect of much longer-term stability for the economy and the country.
“In that context a short two-and-a-half week delay is the best way we will make sure that it is the right decisions we take.”
