Rishi Sunak has delayed the government's much-anticipated fiscal statement - which is expected to unleash a new wave of Tory austerity - until next month in one of his first decisions as PM.
Chancellor Jeremy Hunt had been set to announce his financial plan on Monday - which is also Halloween - amid warnings of devastating public service cuts.
But today the new Cabinet, meeting for the first time, was told this has been pushed back to November 17 and upgraded to a full autumn statement - the most important Treasury event outside a Budget.
Mr Hunt, who was yesterday retained at Number 11 as he tries to undo the damage done by disgraced Liz Truss, warned he is ready and willing to make "politically embarrassing" decisions.
Ms Truss had set October 31 for a “medium term fiscal plan” that would unleash billions in cuts to fill a £30-40bn black hole.
The Chancellor had stuck to the date and was due to meet Cabinet ministers one by one - even in Health - to draw up cuts last week.
But the government was hurled into turmoil on Thursday when Ms Truss resigned.
Mr Hunt said it is "prudent" to delay his fiscal announcement - adding it would be "upgraded to a full autumn statement".
He said he is willing to make "politically embarrassing" choices and insisted a "short two-and-a-half week delay" to his statement is the best course of action.
Mr Hunt told broadcasters: "I've demonstrated in the short time that I've been Chancellor that I'm willing to take decisions very quickly and I'm willing to make choices that are politically embarrassing if they're the right thing to do for the country, if they're in the national interest.
"Now we have a new Prime Minister and the prospect of much longer-term stability for the economy and the country.
"In that context a short two-and-a-half week delay is the best way we will make sure that it is the right decisions we take."
He told broadcasters: "I want to confirm that it will demonstrate debt falling over the medium term which is really important for people to understand.
"But it's also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances.
"And for that reason the Prime Minister and I have decided it is prudent to make that statement on November 17 when it will be upgraded to a full autumn statement."
Mr Hunt said he discussed the move with Bank of England Governor Andrew Bailey on Tuesday night, adding he "understands the reasons for doing that and I'll continue to work very closely with him".
New PM Mr Sunak held talks with Mr Hunt today.
Mr Sunak warned there will be “difficult decisions to come” in his first speech in Downing Street but faces an avalanche of warnings and potential Cabinet clashes.
He has appointed Mel Stride, who warned against cutting benefits, to lead the welfare department and Andrew Mitchell, who has slammed foreign aid cuts, as Development Minister.
Sarah Olney, Treasury spokesperson for the Lib Dems, said: “This delay risks leaving mortgage borrowers, pensioners and struggling families under a damaging cloud of uncertainty.
“Rishi Sunak must confirm now that benefits and pensions will be up-rated in line with inflation, and there will be no cuts to our NHS and other crucial public services.
“Sunak was installed by Conservative MPs into Number 10 without anyone voting for him, and without telling anyone about his plans for the country.
“The public deserve to know immediately what lies in store, and that they will not be made to pay for the Conservative Party trashing our economy.”
And last night he did what Liz Truss never bothered to and rang Scottish First Minister Nicola Sturgeon - who waned him not to cut public services. Ms Sturgeon said she voiced “my fear that further austerity will do real damage to people and public services.”
Tory leader of Surrey County Council Tim Oliver, chairman of the County Councils Network, warned cuts to county hall budgets would “hit the most vulnerable in our society”.
He told Mr Sunak today: “Between 2010 and 2018 local government took the brunt of austerity, with councils seeing their budgets halved.
“Considering inflation and demand is set to add £3.5bn to our costs, this would be worse than the period of austerity and devastating for local services.
“We will be left with unpalatable decisions, with many likely to have to resort to a very basic ‘core offer’ level of services.”
Iain Porter of the Joseph Rowntree Foundation urged Mr Sunak to “move quickly” and pledge benefits will rise by 10.1% inflation in April - as he had promised when he was Chancellor.
“Families on low incomes desperately need stability and certainty, as they try to afford the essentials, pay their rent, and keep food on the table,” Mr Porter said.
