Brits warned to ‘hope for the best but prepare for the worst’ – just weeks before Autumn 2023 budget

Jeremy Hunt warns of potential challenges ahead of Autumn Budget

Chancellor Jeremy Hunt has issued a warning to the British public, urging them to "hope for the best but prepare for the worst" ahead of the Autumn Budget in November. Speaking from Marrakech, where he is meeting with International Monetary Fund chiefs, Hunt revealed that the government's debt interest is likely to be £20 to £30 billion higher than previously predicted. These soaring costs make the prospect of tax cuts and increased spending on the NHS and schools in the Autumn Budget less likely.

Tragic events impacting Britain's economy

Hunt emphasized that recent tragic events, such as the war in Israel and Ukraine, have had serious effects on Britain's economy. He acknowledged that hard-up households face a "very challenging environment" in the short term, but expressed confidence in the longer-term future.

Short-term challenges and the need for preparation

Addressing the challenges faced by the economy, Hunt highlighted the persistent issue of high inflation and the unpredictable international environment. He stressed the need for reliance and preparation in the face of potential shocks, stating, "I am very much hoping for the best, but I do need to prepare for the worst, because I think we can see that the world is a very dangerous place right now."

Expectations for the Autumn Budget

When asked about what can be expected in the upcoming Autumn Budget, Hunt stated that it will likely be a mix of good and bad news. He acknowledged the resilience of the British economy compared to a year ago and highlighted some underlying strengths. However, he previously announced that no major tax cuts will be implemented in the budget.

Last month, at the Tory Conference, Hunt's colleague Rishi Sunak hinted at the possibility of tax cuts before the next general election. However, both Hunt and Sunak agree that inflation must decrease further before any changes to tax rates are made.