UK Chancellor, Jeremy Hunt, issued a warning today for Brits to "hope for the best but prepare for the worst" in anticipation of November's Autumn Budget. Speaking from Marrakech, Morocco, where he is meeting with International Monetary Fund chiefs, Hunt revealed that the government's debt interest is likely to be £20 to £30 billion higher than predicted earlier this year.

Soaring costs make tax cuts and increased spending less likely

The higher costs for the public purse mean that the possibility of tax cuts and increased spending on the NHS and schools in the Autumn Budget is becoming less likely. Hunt pointed to tragic events such as the war in Israel and Ukraine as having serious snowball effects on Britain's economy. He emphasized that hard-up households face a "very challenging environment" in the short term, but expressed confidence in the longer-term future.

Hunt: "We have challenges"

Hunt acknowledged the challenges facing the UK economy, stating that inflation is still too high and that there are still many shocks in the international environment. He stressed the need for reliance in the face of these shocks and expressed the importance of preparing for the worst, given the current global instability.

Autumn Budget: A mix of good and bad news?

When asked about the upcoming Autumn Budget, to be revealed on November 22, Hunt replied that it will contain "a bit of both" good and bad news. He noted that despite predictions from international organizations, the British economy has proven to be more resilient than expected, and people are recognizing its underlying strengths.

Last month at the Tory Conference, Hunt announced that there will be no major tax cuts in the Autumn Budget. However, Rishi Sunak hinted at the possibility of desired cuts before the next general election. Both Hunt and Sunak agree that inflation must decrease further before any changes to rates can be made.