UK Government Postpones Fiscal Plan Announcement to November 17 "For the Best Decision"

Rishi Sunak, Prime Minister of the United Kingdom, and Jeremy Hunt, UK Chancellor of the Exchequer
[Photo by AP Yonhap News]

[Asia Economy Reporter Byunghee Park] Bloomberg reported on the 26th (local time) that newly appointed Prime Minister Rishi Sunak postponed the Medium-Term Fiscal Plan announcement, originally scheduled for October 31, to November 17 in order to make the right decision.

The report stated that Chancellor of the Exchequer Jeremy Hunt proposed the delay to Prime Minister Sunak, who accepted it.

Chancellor Hunt explained, "I proposed the delay," adding, "It is difficult during challenging times, but it is the best way to make the right decision."

Prime Minister Sunak also told ministers at a meeting, "It is important to make the right decision, and time is needed to confirm such decisions with the cabinet." He further explained, "We will invest public finances on a sustainable basis and specify ways to reduce debt in the medium term."

Despite the UK government's delay in announcing the fiscal plan, there was little change in the pound exchange rate and bond market movements.

However, this delay is expected to make the economic outlook more difficult for the Bank of England (BOE), the UK's central bank. The BOE must announce the economic outlook when setting the base interest rate on November 3, before the government announces its measures.

The fiscal plan to be announced by the UK government is expected to include measures to cover a fiscal deficit estimated at ?40 billion (approximately 65 trillion won).

Unlike during former Prime Minister Liz Truss's tenure, which shook not only the UK but also the global financial markets, the plan will include forecasts from the Office for Budget Responsibility (OBR). Former Prime Minister Truss, who took office earlier last month, announced a large-scale tax cut policy without presenting a funding plan, throwing the market into confusion.

This content was produced with the assistance of AI translation services.