UK Prime Minister Rishi Sunak to Raise Taxes to Reduce $57.5Bln in Budget Deficit - Reports

MOSCOW1 (Sputnik) - New UK Prime Minister Rishi Sunak intends to raise taxes to cover a 50 billion pound ($57.5 billion) deficit in public finances, British media reported.

Chancellor of the Exchequer Jeremy Hunt is expected to present the government's medium-term financial plan "to put public spending on a sustainable footing, get debt falling and restore stability" on November 17.

Sunak and Hunt reportedly agreed on a tax increase on Monday.

"It is going to be rough. The truth is that everybody will need to contribute more in tax if we are to maintain public services. After borrowing hundreds of billions of pounds through COVID-19 and implementing massive energy bills support, we won’t be able to fill the fiscal black hole through spending cuts alone," a Treasury source told British media.

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 to stabilize the public debt.

Sunak became the country's third prime minister of 2022. In July, then-Prime Minister Boris Johnson announced his intention to step down due to accusations of violating COVID-19 regulations, and sexual assault claims against Government Deputy Chief Whip Christopher Pincher.

Liz Truss, elected in September to replace Johnson, was only 44 days in office. On October 20, she announced her resignation due to criticism over the government's new economic plan and the possibility of increasing public debt for its implementation.