Jeremy Hunt: 'Current numbers worse than what I faced in spring'

13 October 2023 , 12:29

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The Chancellor of the Exchequer praised the resilience of the British economy, which he believes has proven stronger than many international organisations had predicted. (Image: PA Wire/PA Images)

Chancellor Jeremy Hunt has warned that the UK's financial situation is "worse than in spring" as he prepares for his autumn statement.

Speaking to Sky News from Marrakech, Morocco, where he is attending the International Monetary Fund (IMF) and World Bank annual meetings, Mr Hunt said it's a "very challenging environment" at present. However, he expressed "a great deal of confidence" in the long-term prospects of the British economy, provided "providing we take the difficult decisions necessary" are made.

The Chancellor also revealed that the Government's debt interest is set to be "is likely to be £20 billion to £30 billion higher this year than we predicted in the spring". When asked about the upcoming autumn statement, Mr Hunt suggested it would bring both good and bad news.

He praised the resilience of the British economy, which he believes has proven stronger than many international organisations had predicted. However, he acknowledged short-term challenges, including high inflation and potential international shocks.

"So I need, as Chancellor, to focus on reliance in the face of those shocks. I am very much hoping for the best, but I do need to prepare for the worst, because I think we can see that the world is a very dangerous place right now."

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When asked if the economic figures, including inflation, are not as good as he would have hoped for at this time, he admitted: "The numbers are definitely worse than what I faced in the spring."

"Our debt interest is likely to be £20 billion to £30 billion higher this year than we predicted in the spring. So yes, it's a very challenging environment in the short term."

"But my approach to this is to say we will manage those short-term pressures whilst at the same time building for the long term, doing the things that mean that we can be confident we will be a successful and prosperous economy going forward."

"And as I look at the exciting things that are happening in the longer term in the British economy, I have a great deal of confidence providing we take the difficult decisions necessary to get inflation down, to get our borrowing back under control. If we do these kinds of things then we can be very confident of our future."

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Steve Charnock