New Chancellor to make Commons statement

The new Chancellor of the Exchequer Jeremy Hunt will make a statement to the House of Commons today (17 October) where he will bring forward measures from the Medium-Term Fiscal Plan.

Mr Hunt replaced Kwasi Kwarteng on 14 October following a hugely eventful day in British politics.

Mr Kwarteng resigned following the fallout from his Mini Budget on 23 September.

The former Chancellor’s refusal to publish a draft report by the Office for Budget Responsibility (OBR) to accompany the Mini Budget 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 then scrapped a decision to cut the top rate of income tax.

At a press conference on 14 October, 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.

The government has now confirmed that Mr Hunt will make statement to Parliament following ‘further conversations between the Prime Minister and the Chancellor over the weekend to ensure sustainable public finances underpin economic growth’.  

The Chancellor will then deliver the full Medium-Term Fiscal Plan to be published alongside a forecast from the independent Office for Budget Responsibility on 31 October. 

All eyes will be on Mr Hunt at both statements as he explains how he intends to meet the challenges of balancing the country’s books and moving the economy forward.