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The UK’s international reputation has taken “a bit of a knock” this year, Rishi Sunak has admitted, as he vowed to restore economic stability.<\/b><\/p>\n<\/div>\n<\/div>\n\n
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The prime minister said tax rises and spending cuts in Thursday’s Autumn Statement were needed to reduce rising inflation and UK public debt.<\/p>\n<\/div>\n<\/div>\n
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Critics of his approach fear it could worsen a predicted two-year recession.<\/p>\n<\/div>\n<\/div>\n
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But Mr Sunak said decisions would be taken in a “fair” way, and everyone would benefit from reduced debt levels.<\/p>\n<\/div>\n<\/div>\n
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Speaking to the BBC’s political editor Chris Mason at the G20 summit in Indonesia, he added reducing inflation was his “number one challenge”.<\/p>\n<\/div>\n<\/div>\n
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He added it was important to “limit” mortgage repayments for homeowners, which have risen in the wake of September’s mini-budget.<\/p>\n<\/div>\n<\/div>\n
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“The best way to do that is to get a grip of our borrowing levels, and have our debt on a sustainable basis falling,” he added.<\/p>\n<\/div>\n<\/div>\n
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\n- Everyone will have to pay more tax – chancellor<\/li>\n
- Economists question ‘black hole’ in UK finances<\/li>\n
- What do we know will be in the Autumn Statement?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
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Chancellor Jeremy Hunt, who will unveil the Autumn Statement on Thursday, has warned that everyone will pay more tax under his plans to repair the public finances.<\/p>\n<\/div>\n<\/div>\n
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The budget, the government’s second financial package in under two months, comes after mostly now-abandoned tax cuts in the mini-budget, outlined by Liz Truss’s chancellor Kwasi Kwarteng, sparked financial turmoil.<\/p>\n<\/div>\n<\/div>\n
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The Treasury has not confirmed details, but the BBC has been told Mr Hunt is set to announce spending cuts of about \u00a335bn and plans to raise \u00a320bn in tax.<\/p>\n<\/div>\n<\/div>\n
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The plans are likely to include freezes to income tax bands, and increases to taxes paid on profits made from selling shares and second homes. <\/p>\n<\/div>\n<\/div>\n
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Mr Sunak has hinted that pensions will rise to keep pace with inflation, telling reporters on the way to Bali that pensioners would be “at the forefront of my mind”.<\/p>\n<\/div>\n<\/div>\n
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Also under discussion is a plan to allow councils in England to raise council tax by more than 3% without holding a local vote – something they cannot do at the moment.<\/p>\n<\/div>\n<\/div>\n
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Chancellor Jeremy Hunt was earlier urged not to go down that route by Labour MP Chris Bryant – but he did not rule it out.<\/p>\n<\/div>\n<\/div>\n
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He said everyone will be asked to contribute more in tax in Thursday’s Autumn Statement, with the better-off taking the biggest hit.<\/p>\n<\/div>\n<\/div>\n
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“And that will be reflected in our decisions on council tax and every other tax as well,” Mr Hunt told MPs.<\/p>\n<\/div>\n<\/div>\n