Fiscal statement will be first task for new Chancellor

The new Chancellor of the Exchequer is Jeremy Hunt whose first major task will be delivering the fiscal statement on 31 October. 

Mr Hunt will need to re-work his predecessor’s Mini Budget into something that both the financial markets and Conservative Party can get behind. 

The statement on Halloween is expected to deliver the Medium-Term Fiscal Plan which will detail how the government will implement tax cuts and cut debt. An economic forecast produced by the Office for Budget Responsibility (OBR) will be published at the same time. 

Mr Kwarteng had originally been scheduled to make the statement on 23 November. However, in a bid to reassure markets after his Mini Budget sparked turmoil, he brought the date forward by almost a month. 

Now, after a hugely eventful day in British politics, Mr Kwarteng has resigned and been replaced by the former Health Secretary. 

The former Chancellor’s refusal to publish a draft report by the OBR to accompany the Mini Budget on 23 September rattled the financial markets. 

Concerns that Mr Kwarteng's tax plans were unaffordable prompted the pound to hit a record low against the dollar of $1.03 and the Bank of England to step in to stop pension funds from collapsing. 

Additionally, Mr Kwarteng recently scrapped a decision to cut the top rate of income tax. 

And today Prime Minister Liz Truss confirmed that corporation tax will rise from 19% to 25% next April as originally planned before the Mini Budget. This measure is expected to raise an extra £18 billion for the government. 

There will be keen interest in Mr Hunt’s first set piece on 31 October to see how he meets the challenges of balancing the country’s books and moving the economy forward.