ao link
Credit Strategy homepage
Intelligence, insight and community
for credit professionals

Dear visitor,
You're reading 1 of your 3 free news articles this quarter

 

Register with us for free to get unlimited news, dedicated newsletters, and access to 5 exclusive Premium articles designed to help you stay in the know.

 

Join the UK's leading credit and lending community in less than 60 seconds.



Register now  or  Login

Government facing “sober” decisions on spending cuts

The chancellor and the prime minister are facing “sober” decisions on potential cuts and tax rises, officials have reportedly said.

Share on LinkedInShare on Twitter

According to the BBC, Rishi Sunak and Jeremy Hunt were told in a meeting on Thursday that economic growth is forecast to be considerably lower than the last independent forecast – meaning they have a bigger financial hole to fill.  

 

The meeting follows an announcement from the government that it would be pushing it’s UK tax and spending plan back until 17 November – two weeks after the previously announced date of 31 October.  

 

And, while the Treasury hasn’t put a figure on how much it will need to find in the budget, the BBC has said it has been told it may need to be at least £50bn. This was because the government needed some “headroom” beyond just getting their existing debt down in case the economy doesn’t grow as much as expected.  

 

A Treasury source told the outlet: “Markets have calmed somewhat, but the picture is still bleak. Britain is facing an economic crisis with a massive fiscal black hole to fill.  


“People should not underestimate the scale of this challenge, or how tough the decisions will have to be. We’ve seen what happens when governments ignore this reality.” 

Share on LinkedInShare on Twitter

Stay up-to-date with the latest articles from the Credit Strategy team

Credit Strategy

Member of

Get the latest industry news 

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, 1-2 Paris Garden, London, SE1 8ND. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group