After a meeting between the prime minister and Jeremy Hunt on Monday to plan the upcoming autumn statement, a Treasury source said things would get “rough”. Both Sunak and his chancellor reportedly agreed that “tough decisions” had to be taken because of the “staggering” size of the blow to public finances caused by the Truss mini-budget. Stealth increases in income tax and national insurance contributions are expected to be implemented in the coming years, extending the freeze on tax credits and thresholds. “It’s going to be rough,” the source said. “The truth is that everyone will need to contribute more in taxation if we are to maintain public services. “After borrowing hundreds of billions of pounds through Covid-19 and implementing massive energy bill support, we won’t be able to fill the fiscal black hole with spending cuts alone.” Hunt is said to be seeking to implement an equal split of 50% tax rises and 50% spending cuts, which could translate into £25bn of increases for taxpayers. During the coalition government’s austerity years, the then chancellor George Osborne worked from an 80/20 formula of cuts and tax measures. Despite the tough road ahead, the source said Sunak and Hunt expressed their commitment to protecting the most vulnerable and agreed that “those with the broadest shoulders should be called upon to bear the brunt.” The Chancellor is expected to deliver the Autumn Statement on November 17 after No 10 delayed the announcement from the original Halloween date. Public services in the UK are already facing budget pressure, with councils cutting services to try to cover a £3.2bn budget deficit next year. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. While the economic outlook looks cloudy for taxpayers, Sunak has been well received by voters in terms of financial planning. The latest Opinium poll for the Observer found Sunak’s tenure is already improving the Conservatives’ reputation for economic management, taking the lead over Labour. A third of voters said they would prefer “a Tory government led by Rishi Sunak” to manage the economy, with 29% choosing “a Labor government led by Keir Starmer”.
