New Chancellor set to deliver statement on Medium-Term Fiscal Plan

17 Oct 2022

New Chancellor Jeremy Hunt will make a statement today to bring forward measures from the upcoming publication of the government's Medium-Term Fiscal Plan on 31 October.

The statement follows conversations between Prime Minister Liz Truss and the Chancellor in regard to ensuring that sustainable public finances underpin economic growth.

The Treasury confirmed that the Chancellor will deliver the Medium-Term Fiscal Plan on 31 October, alongside the publication of an economic forecast from the Office for Budget Responsibility (OBR).

Experts predict that Mr Hunt will use today's statement to delay the plan to cut the basic rate of income tax from 20p to 19p.

Commenting on the matter, Paul Johnson, Director of the Institute for Fiscal Studies (IFS), called for the government to 'get a grip on public finances'. He said: 'If all we get is delay of 1p off income tax to when it was supposed to be in a couple of years' time, I'm not clear how that helps.

'It may be that is reversed altogether and is therefore even tighter than Rishi Sunak was intending to be.'