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The Prime Minister’s comments come after Chancellor Jeremy Hunt gave a series of television interviews, in which he told Sky News he hoped to make the next recession “as short and shallow as possible” and said the Government would by “asking all the sacrifices”. . Mr Hunt was asked by the BBC if taxes would rise, to which Mr Hunt replied: “We’re going to see everyone pay more tax, we’re going to see spending cuts, but I think it’s very important to say we’re a resilient country “.
On Sunday night, Mr Sunak spoke to reporters while traveling to the G20 summit in Bali.
The Prime Minister warned that the Government must follow through on its promise of tax increases and spending cuts or market risks that could destabilize the economy.
He said that the Government had to respond to “the expectations of international markets” after a loss of confidence brought by the mini-budget of former Prime Minister Liz Truss.
However, Mr Sunak promised that Chancellor Hunt was also planning longer-term proposals to “cut people’s taxes over time” when he delivered the Autumn Statement, the Government’s tax and spending plans , this week Thursday.
The Prime Minister was also asked whether Britain should be preparing for a long and painful recession, and Mr Sunak replied that the Autumn Statement will explain how the country will recover.
Mr Sunak promised to cut income tax last year during the Conservative leadership contest over the summer, and also said he hoped future tax cuts could be possible.
He said: “Part of our work is not only to restore stability to the system, which we will do, but also to lay the foundations for the economy to recover and grow,
“Ultimately, that’s what we all want to see. That’s how we can cut people’s taxes over time and support public services. And you’ll hear that side of the equation from the Chancellor as well.
It comes at a time when Mr. Sunak is facing critics in the Conservative Party who have said that the Prime Minister’s tax plans could harm economic growth.
Former Home Secretary Simon Clarke has become the most senior Tory MP to call for a change in the economic plan, saying taxation was already “at a very high level”.
He also called on Mr Sunak and Mr Hunt to be “extremely wary of further increasing the challenges to businesses and households”.
Treasury MP John Glen said it was “appalling” that taxpayers’ money was being “taken out of the system when it could be put towards areas that really need it”.
The Labor Party said the UK is the only G7 nation using austerity to tackle a potential recession and said the UK had particularly low economic growth due to conservative policies.
The Shadow Chancellor, Rachel Reeves, warned that “public services are already on their knees”.
She added: “Seven million people are waiting for an operation or NHS support… I don’t believe that austerity 2.0 after the austerity we’ve been through for the last 12 years is the right approach.”
On Twitter, Ms Reeves said: “Instead of piling the pressure on workers, the Tories should be making fairer choices and putting forward a proper plan for growth.”
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