Hunt plans to cut spending and raise taxes as U.K. faces ‘‘into the storm’’

On Thursday, Jeremy Hunt, Britain's new Treasury chief, will face a daunting task: he will have to convince the markets that he can restore public finances without much damage to public services.

If he fails to do so, the Conservatives may lose public trust, which could lead to their defeat in the next general election. We should recall that it will be held no later than 2024.

The Treasury Department has recently released data, where they commented on the global energy and inflation crises. Given the figures, Hunt will warn that the U.K. will face the storm. In addition to this, he will focus on the fact that macroeconomic problems can be solved by making difficult decisions now.

The goal that Hunt and Prime Minister Rishi Sunak are pursuing is to reduce the British debt ratio in the economy by 2027-2028. The government needs to find about £55 billion of savings ($65 billion). On Thursday, Hunt is expected to introduce a new financial plan with a 60-40 split between spending cuts and tax rises.