With stark economic challenges facing Prime Minister Rishi Sunak's government, all Britons were warned on Monday that they will have to pay more in tax in the coming years to fix the country's fiscal black hole.
Mr Sunak and Chancellor of the Exchequer Jeremy Hunt met on Monday to discuss tax and spending plans before an economic statement planned for November 17.
They agreed “tough decisions” are required on tax rises and on spending to fill the “eye-watering” gap in Britain’s public finances, a Treasury readout said.
“They agreed on the principle that those with the broadest shoulders should be asked to bear the greatest burden,” the Treasury said.
“However, given the enormity of the challenge, it is inevitable that everybody would need to contribute more in tax in the years ahead.”
Rishi Sunak through the years — in pictures
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British Prime Minister Rishi Sunak announces July 4 as the date for the 2024 general election at No 10 Downing Street. Here, The National looks back at his political career. Getty Images -
Mr Sunak during local election campaigning in Teesside in May 2024. Getty Images -
Mr Sunak presents cupcakes to journalists on board a plane on the way to Warsaw in April 2024. Getty Images -
Mr Sunak during a press conference in Downing Street in January after the Safety of Rwanda Bill passed its third reading in the House of Commons. Getty Images -
Being applauded after his speech at the Conservative Party conference in October 2023. Getty Images -
Looking pensive alongside then-home secretary Suella Braverman at No 10 in October 2023. She didn't last much longer in the cabinet. Getty Images -
Mr Sunak sits in an old Special Branch police vehicle which was used to transport former prime minister Margaret Thatcher, in July 2023. Getty Images -
On board Border Agency cutter HMC Seeker during a visit to Dover in June 2023. Getty Images -
Mr Sunak alongside European Commission President Ursula von der Leyen, Canada's Prime Minister Justin Trudeau, US President Joe Biden, French President Emmanuel Macron and German Chancellor Olaf Scholz during the G7 Summit in May 2023. Getty Images -
Mr Sunak and his wife Akshata Murty arriving in Japan ahead of the G7 Summit in May 2023. Getty Images -
Mr Sunak and Chancellor Jeremy Hunt sending a message at Accrington Market Hall in January 2023. Getty Images -
Mr Sunak and Ukrainian President Volodymyr Zelenskyy meet in Ukraine's capital Kyiv in November 2022. Getty Images -
King Charles III welcomes Mr Sunak during an audience at Buckingham Palace, where he invited the newly elected leader of the Conservative Party to become Prime Minister and form a new government in October 2022. Getty Images -
Mr Sunak makes a statement outside No 10 in October 2022 after taking office. Getty Images -
Mr Sunak arrives inside Number 10 in October 2022. Photo: Simon Walker/ No 10 Downing Street -
Greeted by colleagues at Conservative Party HQ after having been announced winner of the leadership contest in October 2022. Getty Images -
Mr Sunak at Westminster Hall in London following the death of Queen Elizabeth II in September 2022. PA -
Mr Sunak visits his family's old business, Bassett Pharmacy, on the campaign trail in August 2022. Getty Images -
Mr Sunak looks at an NLAW anti-tank launcher during a visit to the Thales Defence System plant in Belfast in August 2022. Getty Images -
At a hustings event in Exeter in August 2022. Getty Images -
Celebrates England's first goal as he watches the Women's Euro 2022 final in Salisbury in July 2022. Getty Images -
Mr Sunak and Ms Truss take part in the BBC Leadership debate at Victoria Hall, Hanley, in July 2022. Getty Images -
With daughters Krisna and Anoushka and wife Akshata Murthy in July 2022. Getty Images -
Opening the Great Ayton Village Fete during the queen’s Platinum Jubilee celebrations in June 2022. Getty Images -
Mr Sunak and Ms Murthy speak to then-Prince Charles at a British Asian Trust event in February 2022. Getty Images -
Mr Sunak arrives at COP26 in Glasgow in November 2021 when he was chancellor. Getty Images -
Holding the budget box as he departs 11 Downing Street to deliver his Autumn Budget in October 2021. Getty Images -
At a press conference on the 2021 Budget in London in March 2021. Getty Images -
With former prime minister Boris Johnson during a visit to PD Ports on the River Tees in March 2021. Getty Images -
Mr Sunak poses with the budget box at 11 Downing Street in March 2021. Getty Images -
Meeting staff back at work after being furloughed at Hamleys toy shop in London, December 2020. Photo: HM Treasury -
Mr Sunak visits the Imperial Clinic Research Facility at Hammersmith Hospital, London, in November 2020. Getty Images -
Lighting a candle for Diwali on Downing Street, November 2020. Getty Images -
Working on a speech in his flat above 11 Downing Street in November 2020. Photo: HM Treasury -
Mr Johnson and Mr Sunak visit the headquarters of Octopus Energy in London in October 2020. Getty Images -
With his 'Winter Economy Plan' outside 11 Downing Street in September 2020. AFP -
Decorating a plate at Emma Bridgewater pottery in Stoke pottery in September 2020. Getty Images -
Promoting 'eat out to help out' on the Isle of Bute, Scotland, in August 2020. Getty Images -
A member of the public takes a selfie with Rishi Sunak during a visit to Scotland in August 2020. AFP -
Visiting a Wagamama restaurant in central London in July 2020. Photo: HM Treasury -
Rishi Sunak visits a Pret A Manger in Westminster in July 2020. HM Treasury -
With Mr Johnson at his first Cabinet meeting after a reshuffle at 10 Downing Street in February 2020. Getty Images -
Mr Sunak speaks during a general election debate in Cardiff in November 2019. Getty Images
The brutal assessment lays out the challenge for Mr Sunak as he seeks to guide the country through a cost-of-living crisis that’s led to the government pledging tens of billions of pounds to help households and businesses cope with surging energy prices this winter.
At the same time as rolling out that aid, the prime minister is looking for savings and tax increases totalling as much as £50 billion ($57bn) as he seeks to rebuild the UK’s credibility with financial markets after the disastrous economic strategy pursued by his predecessor, Liz Truss, roiled financial markets.
Rishi Sunak's Cabinet — in pictures
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Jeremy Hunt is reappointed as Chancellor of the Exchequer. Getty Images -
Dominic Raab is Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice. PA -
Simon Hart is Parliamentary Secretary to the Treasury (Chief Whip). AFP -
James Cleverly is reappointed as Secretary of State for Foreign, Commonwealth and Development Affairs. Reuters -
Ben Wallace is reappointed as Secretary of State for Defence. AP -
Nadhim Zahawi becomes Minister without Portfolio. AP -
Oliver Dowden becomes Chancellor of the Duchy of Lancaster. Getty Images -
Suella Braverman is Secretary of State for the Home Department. Reuters -
Grant Shapps becomes Secretary of State for Business, Energy and Industrial Strategy. Getty Images -
Penny Mordaunt has been reappointed as Lord President of the Council, and Leader of the House of Commons. Reuters -
Gillian Keegan is Secretary of State for Education. PA -
Mel Stride, Secretary of State for Work and Pensions. EPA -
Therese Coffey, Secretary of State for Environment, Food and Rural Affairs. PA -
Steve Barclay becomes Secretary of State for Health and Social Care. Getty Images -
Michael Gove, Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations. Getty Images -
Kemi Badenoch, reappointed as Secretary of State for International Trade and President of the Board of Trade. She also becomes Minister for Women and Equalities. Bloomberg -
Michelle Donelan has been reappointed as Secretary of State for Digital, Culture, Media and Sport. EPA -
Chris Heaton-Harris, reappointed as Secretary of State for Northern Ireland. PA -
Alister Jack, reappointed as Secretary of State for Scotland. Reuters -
David TC Davies, Secretary of State for Wales. AFP -
Lord True reappointed as Lord Privy Seal, and Leader of the House of Lords. Getty Images -
Victoria Prentis, Attorney General. Getty Images -
Jeremy Quin is Paymaster General and Minister for the Cabinet Office. Getty Images -
Mark Harper, Secretary of State for Transport. PA -
John Glen, Chief Secretary to the Treasury. PA -
Johnny Mercer, Minister for Veterans’ Affairs. PA -
Tom Tugendhat, reappointed as Minister for Security. PA -
Gavin Williamson, Minister without Portfolio. PA -
Robert Jenrick, Minister for Immigration. Getty Images -
Andrew Mitchell is Minister for Development. PA
Mr Hunt is due to announce an Autumn Statement — essentially a budget in all but name — on November 17 and is considering options including extending a windfall tax on energy firms and freezing personal income tax thresholds.
It is also likely to involve politically difficult spending cuts for government departments which may further harm the Conservative Party’s poor ratings in the polls.
