British Prime Minister Sunak wants more austerity and higher taxes

New British Prime Minister Rishi Sunak wants to build an additional fiscal reserve in his economic plan that has yet to be presented. This would offset the UK’s huge budget deficit. According to British media, Sunak would like to raise 50 billion pounds (58 billion euros) through tax cuts and increases.

Sunak and his finance minister Jeremy Hunt want to create additional leeway over the £35 billion (€40 billion) tax gap. A government official, who wished to remain anonymous because plans have not yet been announced, said the economic package should gain more credibility with investors.

Budget plans were already supposed to be released next Monday. But publication was pushed back to November 17 earlier this week. Financial markets are anxiously awaiting plans. Sunak and Hunt will then explain how they want to reduce government debt and restore financial stability.

Under Liz Truss, Sunak’s predecessor, great discontent and turmoil arose in the financial markets over her controversial budget plans. She wanted to implement big tax cuts and the government would also spend a lot more. For this, Truss wanted to borrow a lot of money, which threatened to increase the budget deficit even more. That failed economic policy cost her the premiership last week.