FT-Chancellor Hunt Targets GBP54bn In Spending Cuts In Autumn Statement

The Financial Times is reportingthat Chancellor of the Exchequer Jeremy Hunt is targeting GBP54bn in public spending cuts as part of the upcoming autumn statement on 17 November.

• FT: "The final spending cuts total is yet to be decided, reflecting daily changes in gilt markets but is now higher than ministers expected a fortnight ago. The Treasury is aiming to overshoot the actual black hole of about £40bn in order to create additional fiscal headroom to allow for the possibility that economic conditions deteriorate more than currently expected."
• The gov't has thoroughly prepared markets and the public for what is expected to be a tough set of measures (in stark contrast to the mini-budget that sank the Truss gov't), but nevertheless the autumn statement could hit PM Rishi Sunak's popularity.
• Initial polling following his taking office still shows Sunak's centre-right Conservatives trailing the centre-left Labour Party, although the gulf between the two has fallen from around 30-35% at the end of the Truss gov't to ~20% now. Leadership polls show Sunak with much higher ratings than his party behind him, but harsh fiscal measures at a time of high inflation and rising interest rates could damage his standing among voters.