Jeremy Hunt says "nothing off the table" in terms of revising tax cuts and public spending ahead of new budget

New Chancellor Jeremy Hunt said “actions speak louder than words” as he promised to reassure the markets with effectively a new budget in two weeks’ time.

Mr Hunt, appearing on BBC One’s Sunday with Laura Kuenssberg, said he wants to keep as many of Liz Truss’s tax cuts as he can but all options remain open saying: “I’m not taking anything off the table. I want to keep as many of those tax cuts as I possibly can because our long-term health depends on being a low-tax economy. And I very strongly believe that.”

The new chancellor also insisted that Liz Truss has “changed”, as he defended her credibility as leader after being asked by the BBC host why people should trust what the Prime Minister or Government says.

He said: “Because she’s listened. She’s changed. She’s been willing to do that most difficult thing in politics, which is to change tack.

Jeremy Hunt arrives in Downing Street in London after he was appointed Chancellor of the Exchequer following the resignation of Kwasi Kwarteng. Picture date: Friday October 14, 2022.

“What we’re going to do is to show not just what we want, but how we’re going to get there.”

He added that no Government department would be immune from “efficiency savings”, as he signalled spending cuts to come – but that there would not be a return to the austerity measures of 2010 saying: “I was in the cabinet in 2010 when we had that first period of austerity. I don't think we’re going to have anything like that this time.”

He added: “I’m going to be asking every Government department to find further efficiency savings. There is one thing we can do, and that’s what I am going to do, which is to show the markets, the world, indeed people watching at home, that we can properly account for every penny of our tax and spending plans.”

He said he hopes his fiscal statement can stabilise the markets.

“I think for people trading in markets, actions speak louder than words,” Mr Hunt said.

“The Prime Minister has changed her Chancellor. We are going to have a very big fiscal statement a bit like a budget in which we set out the tax and spending plans for several years ahead, and that’s going to be independently verified by the Office for Budget Responsibility.”

Mr Hunt was asked about the Government “ditching the entire thrust of what the Prime Minister wanted to do with the economy”, and whether it is himself or Liz Truss who is in charge.

Mr Hunt said: “The Prime Minister’s in charge.”

Asked if that is really the case, he added: “Yeah. I think it’s important when you talk about ditching things, the biggest element of that mini-budget was the energy price guarantee.”

Widely seen now as the most powerful man in Government, Hunt appeared to rule out any future tilt at the Tory leadership saying a desire to lead the party had been “clinically excised” thanks to his previous failed attempts.

He said: “I think having run two leadership campaigns, and by the way failed in both of them, the desire to be leader has been clinically excised from me.

“I want to be a good Chancellor. It’s going to be very, very difficult. But that’s what I’m focusing on.”