Ministers are to re-examine the pensions triple lock and increasing benefits in line with inflation over the next fortnight, according to No 10, after Rishi Sunak delayed the announcement of the government’s fiscal plans from 31 October to 17 November. The Treasury has said the new date will now be a full autumn statement, with Sunak telling his cabinet that time needed to be made to do things in the proper way. The chancellor, Jeremy Hunt, said he had agreed the change of date with Sunak and that the statement would set out in detail plans to reduce debt and a medium-term plan to grow the economy. Sunak said it was “important to reach the right decisions and there is time for those decisions to be confirmed with cabinet”. But in exchanges after prime minister’s questions, Sunak’s spokesperson made no commitment to the triple lock on raising pensions, a Conservative manifesto pledge, or to uprating benefits in line with inflation, which Sunak committed to doing as chancellor. Truss had previously committed to the triple lock – a guarantee that the state pension will rise every year by whichever is highest of inflation, earnings growth or 2.5% – after doubts were raised by Hunt about whether an inflation-linked rise would be possible. “That is something that is going to be wrapped up into the fiscal statement, we wouldn’t comment ahead of any fiscal statements or budgets,” she said. “But what I can say is he has shown through his record as chancellor is that he will do what’s right and compassionate for the most vulnerable.” Sunak and Hunt have both stressed that difficult decisions will need to be made on spending, with departments facing potential double-digit spending cuts in order to show a path to reducing the £38bn black hole in public finances caused by the recent market turmoil. Sunak’s spokesperson ruled out reinstating the national insurance rise, which Truss repealed, saying it was difficult to pause now it had been voted on through parliament. The spokesperson also confirmed that plans had been abandoned for Liz Truss’s supply-side reform plans, which were targeted at eight areas including planning, the environment and childcare, which could have seen a new wave of deregulation. “There are no plans for supply-side reforms as we previously discussed,” No 10 said. “That’s not to say there won’t be elements the chancellor may or may not wish to come forward with in his autumn statement.” Sunak is also thought to be wary of Truss’s pledge to increase defence spending to 3% of GDP. “No decisions have been made on defence spending or significant spending as is custom ahead of a fiscal event,” the spokesperson said. But No 10 did confirm that energy bill support would continue through the winter as previously set out. The spokesperson said: “Yes, the energy price guarantee will continue through the winter.”
The new date means the economic plans and the OBR forecasts will not be made available before the next meeting of the Bank of England’s monetary policy committee (MPC), which sets interest rates, on 3 November. Hunt said the change of plans had been discussed with the Bank’s governor, Andrew Bailey, and he “understands the reasons for doing that and I’ll continue to work very closely with him”. Hunt said: “I want to confirm that it will demonstrate debt falling over the medium term, which is really important for people to understand. But it’s also extremely important that that statement is based on the most accurate possible economic forecasts and forecasts of public finances. “And for that reason the prime minister and I have decided it is prudent to make that statement on 17 November when it will be upgraded to a full autumn statement.” It is the second time the date of the statement has been changed. It was originally announced by Kwasi Kwarteng for 23 November, but then brought forward under intense political and economic pressure to 31 October, in part in order to inform the MPC’s meeting. Bailey had previously welcomed the move to make the fiscal statement before the possible rates rise decision, calling it the “correct sequence”, and said it would be helpful to know the “full scope of fiscal policy by then”.