"Prudent" decision to postpone mini-budget, but campaigners say certainty needed

Chancellor Jeremy Hunt’s “fiscal event” will now be delivered on Thursday, November 17, and will be upgraded to a full autumn statement, the Government says.

It will be delivered alongside a new set of economic forecasts from the Office of Budget Responsibility.

Following the delay, markets have continued to rally, with Government borrowing costs now lower than before Liz Truss’ mini-budget.

But the Joseph Rowntree Foundation (JRF) says there is no need for the Government to delay confirming it will increase benefits in line with inflation – something the Government is yet to make a commitment on.

It is also yet to be confirmed whether the state pension triple lock will be adhered to.

Iain Porter, the JRF’s Senior Policy Adviser said: "The new government must show it is serious about protecting its citizens from harms.

"There is no need to wait for the fiscal statement to take away a huge source of anxiety for millions and confirm that benefits will be uprated as soon as possible in line with September’s inflation rate of 10.1 per cent.

“People on the lowest incomes will need to know that whatever is announced in the upcoming fiscal statement, this is a government which has listened and will protect the worst off from the frightening rises in the cost of living.”

Mr Hunt informed ministers of the decision at the first meeting of Rishi Sunak’s new cabinet in Downing Street yesterday morning.

Following the meeting, Mr Hunt said: “I want to confirm that (the fiscal statement) will demonstrate debt falling over the medium term which is really important for people to understand.

“But it’s also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.

“And for that reason the Prime Minister and I have decided it is prudent to make that statement on November 17 when it will be upgraded to a full autumn statement.”

Mr Hunt said he discussed the move with Bank of England Governor Andrew Bailey on Tuesday night, adding he (Mr Bailey) “understands the reasons for doing that and I’ll continue to work very closely with him”.

He said it is essential to ensure the “very, very difficult decisions” that would be required on tax and spending “stand the test of time”.

“The OBR also want to make sure that their forecasts are the most accurate possible and there have been a lot of changes even in the last 48 hours,” he said.

The improved financial position since Mr Sunak’s appointment means the forecasts from the OBR may be less gloomy than previously feared.

Mr Hunt continued: “And this is my recommendation to the Prime Minister as the best way to ensure that the decisions that we take, these very, very difficult decisions, are ones that stand the test of time and give us the best chance of giving people security over their mortgages, over their jobs, over the cost-of-living concerns that everyone has.”

Both Mr Hunt and the new Prime Minister yesterday attempted to distance themselves from Kwasi Kwarteng’s now-largely-reversed mini budget.

The Chancellor said since taking the job he had shown he was: “Willing to make choices that are politically embarrassing if they’re the right thing to do for the country, if they’re in the national interest.”

Meanwhile the Prime Minister reiterated remarks made outside Downing Street that he would work to correct “mistakes” made by his predecessor.

Sir Keir Starmer’s spokesman said that Labour will be waiting for the latest forecast from the Office for Budget Responsibility before making longer-term commitments.

“The Labour position is the one it has always been, which is that if we were in Government now we would not be getting rid of the triple lock and we would be increasing benefits in line with inflation.

“But beyond that, and as for the longer term, as you’ve heard me say repeatedly, I am not going to write the next manifesto now.

“Like everyone, we will have to wait and see what is in the OBR report and make decisions for the future accordingly.”