The fiscal black hole - issues ahead of the Autumn statementpublished at 08:36 Greenwich Mean Time 30 October 2022
Earlier this week, Chancellor Jeremy Hunt delayed the much-anticipated plan on the UK's tax and spending by more than two weeks.
Rescheduled from tomorrow, the statement is expected to set out how the government intends to get its debt falling in order to reassure investors of the UK's economic credibility, following financial turmoil after former chancellor Kwasi Kwarteng’s mini-budget.
The 17 November plan will need to fill a “fiscal black hole”, or shortfall, in the government’s budget. Estimates suggest the government may have to find up to £50bn.
Ahead of the statement, the government is yet to set out its position on various issues including whether benefits and pensions will rise in line with inflation, defence spending, taxes, NHS hospital funding and possible cuts to government departments.
Our political correspondent Ione Wells reports that, while the cost of government borrowing has fallen in recent days, the chancellor and PM have been told economic growth is forecast to be lower than expected - leaving them with “sober” decisions on spending cuts and tax rises.