What is Jeremy Hunt’s economic record and what could he look to do as Chancellor?

(Houses of Parliament)

Former foreign secretary and Conservative leadership contender Jeremy Hunt has been named Chancellor, Downing Street has confirmed, ushering in a new era in the Treasury after five tumultous weeks.

His first task will be to reassure the markets following a month of volatility in reaction to his predecessor Kwasi Kwarteng’s mini-Budget.

Despite being more traditionally associated with the centrist ‘One Nation’ wing of the Tory party, Mr Hunt has served under two different Prime Ministers and proven to be ideologically flexible.

The Standard looks at what he could do in Government.

What could Mr Hunt look to do in the Treasury?

Mr Hunt’s immediate task will be to restore the market’s faith in the Government. This will help to stabilise the pound and gilt markets.

Following this, Ms Truss said that Mr Hunt “would deliver the medium-term fiscal plan” later this month and “drive our mission to go for growth”. Her comments suggest that economic policy could still be driven by No10.

She said that Mr Hunt “shares her vision” of a “high growth, low tax” society.

But during the leadership campaign, Mr Hunt said candidates would be “wrong” to promise unfunded tax cuts.

“No Conservative should promise unfunded tax cuts, because it’s an increase in borrowing that’s paid for by future generations,” he told Sky News.

However, during the campaign he vowed to cut corporation tax to 15 per cent, which Ms Truss has just chosen to increase.

“Corporation tax matters the most to businesses and defines whether we are a pro-enterprise economy. I want to send a signal that I want people to be entrepreneurs.”

Mr Hunt also pledged to give businesses in Red Wall seats zero business rates for five years.

Critical of higher taxes

Like Ms Truss, Mr Hunt was critical of Rishi Sunak’s decision to increase National Insurance by 1.25 percentage points last year to fund the health and care levy.

He said he has “always believed a competitive, low-tax economy is the best way for our country to be strong and prosperous – as well as to provide reliable long-term funding for the NHS”.

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However, he has pledged to keep the levy as the “NHS needs the money”.

As chairman of the health and social care select committee, Mr Hunt has been vocal about reforming the NHS. More recently, he has raised concerns about staff vacancies in “nearly every specialty” of the health service.

Mr Hunt is far more risk-averse than his predecessor Kwasi Kwarteng when it comes to cutting taxation, however.

He told the Telegraph: “I would love to see income tax cut, but it has to be done in a way that is sustainable.

“It can’t be an electoral bribe and it depends on growth. What you’d need is an income tax cut that is for life, not for Christmas. That means starting by saying we’re going to get the economy growing, then you get yourself in a position.”

What is Jeremy Hunt’s record in Government?

Mr Hunt was elected to represent the constituency of South West Surrey in the 2005 General Election. That same year, he was appointed Shadow Minister for Disabled People in December 2005.

He served as Culture Secretary in the Tory and Lib Dem coalition Cabinet in 2010 before moving to the role of Health Secretary in 2012.

Mr Hunt went on to serve in the post for six years, during which he was criticised for controversial reforms including a new junior doctors contract which sparked a wave of industrial action in the NHS.

Who did Mr Hunt back to be Tory leader?

Mr Hunt takes on the role despite being one of Rishi Sunak’s most prominent backers during the Tory leadership campaign over the summer.

In July, he said Mr Sunak had “formidable ability” and had “been thinking about the right thing to do for our economy, for families up and down the country, very hard over the last two years”.

It came after he was eliminated from the race to Number 10 after both failed to gain the support of 30 MPs to reach the next round. He received just 18 votes from Tory MPs.

Mr Hunt has run to be Tory leader on two previous occasions, competing with Boris Johnson in 2019 and over the summer.