UK must raise taxes and cut spending, Hunt says ahead of budget

Chancellor says he aims to restore economic credibility after market chaos sparked by former prime minister Liz Truss

British prime minister Rishi Sunak alongside his finance minister Jeremy Hunt. 'We're all going to be paying a bit more tax, I'm afraid,' Hunt said.

UK finance minister Jeremy Hunt said he will set out tax rises and spending cuts this week to show Britain can fix its public finances and restore its economic credibility after financial market chaos sparked by former prime minister Liz Truss.

But he said poorer households should be spared much of the pain and cuts to public services would be balanced.