Jeremy Hunt says taxes will rise and 'tough' cuts needed after mini budget 'mistakes'

Liz Truss's new chancellor, Jeremy Hunt, has said taxes would rise and warned of "tough" spending cuts ahead, in an extraordinary series of interviews just hours after taking office.

He also refused to commit to the 1p income tax cut promised by the Prime Minister and to increase defense spending to 3%, as he admitted that "mistakes" had been made in last month's mini-budget.

In an unexpected moment, his attempts to map out his economic strategy were momentarily derailed when actress Miriam Margolyes told the show Today that when she saw him walk into the studio, she said, "'You've got a great job, good luck.' is, "Fuck you, bastard."

"But you can't say that," she added, live on air.

In a move that risks inflaming the conservative right, Mr Hunt has suggested in several interviews that there will be tax hikes ahead as he works to balance the Treasury books.

He said twice that "some taxes will go up".

And he suggested that the planned 1p cut in income tax could be scrapped. He was "very hopeful" that the government could keep the measure, he said, but would not make a decision until he had considered everything.

He also appeared to reject Ms Truss' promise to increase defense spending to 3 percent. 100, saying it would depend on the state of the economy.

Mr. Hunt became chancellor after Ms Truss abruptly sacked her first choice, Kwasi Kwarteng, in a bid to salvage his faltering post as prime minister.

The Prime Minister also announced a reversal of his flagship plans to cut the corporate tax rate.

On Sky News, Mr Hunt denied that the UK was returning to an era of austerity, but admitted "difficult" spending decisions had to be made.

"I don't think we're talking about austerity like we had in 2010 when I was also in cabinet," he said.

"But we are talking about very difficult decisions in budgets where there is already a lot of pressure."

He clarified that he was now implementing his economic plans, not that of Mr. Kwarteng and Mrs. Truss, which was to be presented on Halloween. Asked if he now knows 'the plan' to calm the markets, which were spooked after Mr Kwarteng's mini-budget, Mr Hunt replied: 'That's what I'm going to go to work with my officials."

When asked if he would have a 'clean slate' on the mini-budget, Mr Hunt replied: 'Yes'.

He declined to go into specifics about taxes or commit to benefits rising with inflation, despite repeatedly saying he was a "compassionate Conservative government".

However, the new Chancellor signaled that the NHS would not be immune to tough decisions on public spending.

He said that two errors had been made in the mini-budget. The planned tax cut for the wealthiest and the decision to "fly blind" and not let the Office of Budget Responsibility (IOBR) "say the sums add up".

< p>On the prime minister's future, he insisted she had "listened", adding: "I think the last thing people want now is more political instability." Ms Truss became prime minister last month after Tory MPs ousted Boris Johnson following a series of scandals including partygate. With his appointment, Mr Hunt becomes the fourth Chancellor in four months.

Mr. Hunt is due to meet with Treasury officials later on Saturday and with Liz Truss on Sunday at Checkers.

But his plans drew a backlash from Tory Thatcherite MP John Redwood, who tweeted: 'You can't tax your path to higher growth. If you tax too much, you end up borrowing more because you have a worse downturn."

And Lord Rose, the President...