Economy

UK to Direct Profits of Banks, Energy Companies to Stabilize Public Debt, Reports Say

MOSCOW (Sputnik) - New UK Chancellor of the Exchequer Jeremy Hunt is planning to use profits of banks and oil and gas companies to stabilize the public debt of 40 billion pounds ($45 billion) after the failed economic policy of Prime Minister Liz Truss, the Financial Times reported on Wednesday.
Sputnik
Hunt also plans to increase taxes and reduce public spending to improve the national debt situation, the newspaper added.
On October 11, the Institute for Fiscal Studies said that the UK government needed to tighten fiscal policy and cut spending by more than 60 billion pounds ($66 billion) to stabilize the public debt.
On Saturday, Hunt said that the authorities, in particular the defense ministry, have to prepare for spending cuts. He also refused to promise that the government would not abandon plans to increase defense spending to 3% of GDP by 2030, as promised by Truss.
In addition, on Monday, Hunt canceled almost all measures of the controversial plan to support the country’s economy, proposed by his predecessor, Kwasi Kwarteng.
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