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UK Braces for Sudden Return of Austerity as Hunt Demands Savings

  • Manifesto pledges at risk include state pension guarantee
  • Dramatic shift likely to anger voters after market turmoil
Jeremy Hunt

Jeremy Hunt

Photographer: Carlos Jasso/Bloomberg

Liz Truss’s UK government has raced from massive tax cuts and stimulus to what is effectively austerity 2.0 in a matter of days.

All government departments are being told to find savings, which outside of health and defense are expected to be as much as 15% of budgets, people familiar with the matter said. No options are off the table and new Chancellor of the Exchequer Jeremy Hunt has even refused to guarantee he will stick to a key Conservative Party manifesto pledge to raise the state pension in line with the highest of inflation, wages or 2.5% -- known as the “triple lock.”