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UK faces a 50 billion pound fiscal gap, says government sources

According to two government sources, British Finance Minister Jeremy Hunt will try to close a $57 billion hole in the nation’s public finances with roughly $30 billion in spending cuts and $20 billion in tax increases.


On November 17, Hunt is scheduled to give a financial statement to the legislature. After his predecessor Kwasi Kwarteng’s tax-cutting plan on September 23 drove the value of the pound to a record low against the dollar and ultimately led Liz Truss to resign as prime minister, he will work to restore market confidence.


Early draughts of Hunt’s statement included up to 35 billion pounds in spending reductions and 25 billion pounds in tax increases, according to the British Guardian newspaper on Sunday. On Monday, the Financial Times reported 33 billion pounds and 21 billion pounds, respectively.


When questioned about these projections, two government sources told Reuters that while they were roughly accurate, the actual numbers were still subject to change.


The Guardian estimate from Sunday was not addressed by the British finance ministry, and a request for comment on the FT estimate was not immediately answered.


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