Jeremy Hunt has admitted “mistakes were made” by PM Liz Truss over the disastrous mini budget in his first interview since taking over as Chancellor - and hinted at yet more Tory U-turns ahead.
The former leadership candidate was parachuted in to replace sacked Kwasi Kwarteng - who reportedly thinks Liz Truss is next for the chop - in No.11 on Friday after another day of embarrassment for the Conservative party.
Speaking to Sky News on Saturday morning as he started his first full day in the new role, a scrambling Mr Hunt admitted errors had been made in and warned “difficult decisions” lay ahead.
He also said public spending may be increased despite assurances from the Prime Minister two days ago that would not happen.
Mr Hunt said: “There were mistakes. It was a mistake when we’re going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest.
“It was a mistake to fly blind and to do these forecasts without giving people the confidence of the Office of Budget Responsibility saying that the sums add up.
“The Prime Minister’s recognised that, that’s why I’m here.”
Mr Hunt started the role yesterday after PM Liz Truss fired Kwasi Kwarteng just 38 days after he was appointed as Chancellor.
The ex-health secretary added: "I want to do the right thing for British people.
“It’s a big honour to do the job that I’ve been asked to do by the Prime Minister but I want to be honest with people: we have some very difficult decisions ahead.
“The last few weeks have been very tough but the context of course is coming out of a pandemic and a cost-of-living crisis.
“And the thing that people want, markets want, the country needs now, is stability. No Chancellor can control the markets.
“But what I can do is show that we can pay for our tax and spending plans and that is going to need some very difficult decisions on both spending and tax.”
However, the new chancellor declined to give any specifics ahead of fiscal statement due on October 31.
He added: "The fundamental strategy behind it all, which is that we have to solve the growth paradox if we want well-funded public services like the NHS and to keep taxes low and falling, then we have to increase our growth rate. That is absolutely right and I also would like to be able to cut corporation tax.
“I’m not going to make any specific commitments about specific departments now, or indeed on the tax side about specific taxes because we have to look at these things in the round.
"We have to make sure as we take these very difficult decisions, we’re honest with people about the situation we face.”
In his resignation letter Mr Kwarteng said he had accepted the PM's request to "stand aside" as Chancellor.
He said: "We have been colleagues and friends for many years. In that time, I have seen your dedication and determination.
"I believe your vision is the right one. It has been an honour to serve as your first Chancellor".
"The medium-term fiscal plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches.”
A source close to the former Chancellor says he believes the Prime Minister will be next on the chopping block.
“Kwasi thinks it only buys her a few more weeks,” a source told The Times.
“His view is that the wagons are still going to circle.”
