Rishi Sunak says taxes must rise to avoid market backlash

Chancellor Jeremy Hunt says everyone will pay more tax after Thursday’s autumn statement

The government must follow through on its promise of tax rises and spending cuts in this week’s autumn statement or risk a market backlash destabilising the UK economy, Rishi Sunak has said.

The prime minister is facing the threat of rebellion from backbench Conservative MPs angry at Jeremy Hunt’s announcement that everyone in the UK will pay more tax as a result of the fiscal policies he is set to unveil on Thursday.

But Mr Sunak said that the chancellor has no choice but to deliver on the expectations of the international markets that he will put Britain’s finances on a sustainable path.