The new Prime Minister of Great Britain, Rishi Sunak, postponed until November 17, two and a half weeks later than previously planned, the presentation of the long-awaited plan to correct the country’s public finances, Reuters reports, citing News.ro. .

The reprieve, Rishi Sunak’s first policy decision since taking over as prime minister from Liz Truss, briefly boosted the cost of British borrowing in financial markets but did not repeat the bond-selling panic caused by the Truss tax cuts in September.

Sunak presides over an economy struggling with recession at a time when the Bank of England is raising interest rates to curb double-digit inflation.

Slow growth and high debt costs have added pressure on already strained public finances.

The government is preparing to cut spending and scrap tax credits, while rising mortgage, food, fuel and heating costs are pushing many families’ budgets to the limit.

“I was honest. We will have to make difficult decisions to restore economic stability and trust,” Sunak told parliament, pledging to protect the most vulnerable.

“The Chancellor (Jeremy Hunt) will set it out in the Autumn Statement in just a few weeks.”

Finance Minister Jeremy Hunt said more time was needed to ensure the new plan took into account the new economic outlook.

The delay in the budget plan will complicate the Bank of England’s task next week, when it is due to publish economic forecasts

The plan envisages how the government will cover a budget deficit of up to 40 billion pounds ($46 billion).

Unlike Truss’s plan last month, it will be fully scrutinized by the Inland Revenue.

Asked to confirm the government’s commitment to expensive inflation-based pension increases, Sunaka’s spokesman said he would not speculate until November 17.

His team gave the same response to other potentially expensive spending decisions on foreign aid, defense and welfare payments.

Confidence in Britain’s financial markets was shaken last month when Liz Truss announced unwarranted tax cuts that triggered a bond market crisis so severe that the Bank of England had to intervene. Truss was forced to change the plan and eventually resigned.

Hunt said he wanted to restore confidence “that the UK is a country that pays its own way and that is why the medium-term fiscal plan is so important”. “The plan would show a decline in the medium term,” he added.

The delay in the budget plan will complicate the Bank of England’s task next week, when it must publish forecasts for the economy without knowing the details of the government’s fiscal plans and make its final decision on monetary policy.

The central bank is expected to raise interest rates again on November 3, likely to 3.0% from 2.25%, although investors increased their bets on a one percentage point hike to a more than one in three chance after the announcement to delay the release budget plan.

Hunt said he discussed the decision to delay the tax return with Bank of England Governor Andrew Bailey, and Bailey understood.

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