Beautiful Virgin Islands

Monday, Oct 06, 2025

UK's reputation has taken a knock, admits Rishi Sunak

UK's reputation has taken a knock, admits Rishi Sunak

The UK's international reputation has taken "a bit of a knock" this year, Rishi Sunak has admitted, as he vowed to restore economic stability.

The prime minister said tax rises and spending cuts in Thursday's Autumn Statement were needed to reduce rising inflation and UK public debt.

Critics of his approach fear it could worsen a predicted two-year recession.

But Mr Sunak said decisions would be taken in a "fair" way, and everyone would benefit from reduced debt levels.

Speaking to the BBC's political editor Chris Mason at the G20 summit in Indonesia, he added reducing inflation was his "number one challenge".

He added it was important to "limit" mortgage repayments for homeowners, which have risen in the wake of September's mini-budget.

"The best way to do that is to get a grip of our borrowing levels, and have our debt on a sustainable basis falling," he added.

Chancellor Jeremy Hunt, who will unveil the Autumn Statement on Thursday, has warned that everyone will pay more tax under his plans to repair the public finances.

The budget, the government's second financial package in under two months, comes after mostly now-abandoned tax cuts in the mini-budget, outlined by Liz Truss's chancellor Kwasi Kwarteng, sparked financial turmoil.

The Treasury has not confirmed details, but the BBC has been told Mr Hunt is set to announce spending cuts of about £35bn and plans to raise £20bn in tax.

The plans are likely to include freezes to income tax bands, and increases to taxes paid on profits made from selling shares and second homes.

Mr Sunak has hinted that pensions will rise to keep pace with inflation, telling reporters on the way to Bali that pensioners would be "at the forefront of my mind".

Also under discussion is a plan to allow councils in England to raise council tax by more than 3% without holding a local vote - something they cannot do at the moment.

Chancellor Jeremy Hunt was earlier urged not to go down that route by Labour MP Chris Bryant - but he did not rule it out.

He said everyone will be asked to contribute more in tax in Thursday's Autumn Statement, with the better-off taking the biggest hit.

"And that will be reflected in our decisions on council tax and every other tax as well," Mr Hunt told MPs.

Indonesia's president welcomed Rishi Sunak to the G20 summit, his first since becoming UK PM

Asked whether he would heed calls from Tory MPs to protect school budgets, Mr Sunak said he couldn't comment on specifics ahead of the statement.

But he added: "Even though the situation is difficult [...] we will make those decisions balancing everything we have to.

"People can see that yes, the approach we've taken is fair, yes the approach we've taken is compassionate when considered in the round.

"Taking a step back, the number one challenge we face is inflation," Mr Sunak added.

"It's important that we get a grip of that. It's important we limit the increase in mortgage rates that people are experiencing."


Tax hikes warning


Thursday's statement comes amid a worsening economic backdrop, with wages lagging rising prices and the Bank of England warning the UK is facing its longest recession since records began.

Labour shadow chancellor Rachel Reeves said the country's financial "predicament" was the result not just of the mini-budget, but "12 years of Conservative mismanagement".

She told reporters her party would make "fair choices" on taxation, highlighting her party's proposals to end non-dom status and increase windfall taxes on energy companies.

Some Conservatives MPs have warned against increasing taxes, with former party leader Iain Duncan Smith warning tax hikes could lead to a "deeper" slowdown.

Sir John Redwood, a former minister on the right of the party, has also warned that "tax rises and the wrong spending cuts now will turn a downturn into a nasty and long recession".

The government is trying to meet its official fiscal targets, which say debt should be falling and day-to-day spending should be met by tax revenue in three years' time.


Rishi Sunak: UK's 'reputation took a bit of a knock'


Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
×