UK's reputation has taken a knock, admits Rishi Sunak

The UK's estimation has taken "a spot of a knock" this year, Rishi Sunak has admitted, arsenic helium vowed to reconstruct economical stability.

The premier curate said taxation rises and spending cuts successful Thursday's autumn connection were needed to hole a "difficult" concern but it would done beryllium done successful a "fair" way.

Critics of his attack fearfulness it could worsen an expected UK recession.

But Mr Sunak said reducing ostentation was the "number 1 challenge".

Speaking to the BBC's Political Editor Chris Mason astatine the G20 acme successful Indonesia, helium said it was "in everyone's semipermanent interest" to trim UK authorities debt.

He added it was important to "limit" owe repayments for homeowners, which person risen successful the aftermath of September's mini-budget.

"The champion mode to bash that is to get a grip of our borrowing levels, and person our indebtedness connected a sustainable ground falling," helium added.

Chancellor Jeremy Hunt, who volition unveil the Autumn Statement connected Thursday, has warned that everyone volition wage much taxation nether his plans to repair the nationalist finances.

The budget, the government's 2nd fiscal bundle successful nether 2 months, comes aft mostly now-abandoned taxation cuts successful the mini-budget sparked fiscal turmoil.

The Treasury has not confirmed details, but the BBC has been told Mr Hunt is acceptable to denote spending cuts of astir £35bn and plans to rise £20bn successful tax.

Asked whether helium would heed calls from Tory MPs to support schoolhouse budgets, Mr Sunak said helium couldn't remark connected specifics up of the statement.

But helium added: "Even though the concern is hard [...] we volition marque those decisions balancing everything we person to.

"People tin spot that yes, the attack we've taken is fair, yes the attack we've taken is compassionate erstwhile considered successful the round".

"Taking a measurement back, the fig 1 situation we look is inflation," Mr Sunak added.

"It's important that we get a grip of that. It's important we bounds the summation successful owe rates that radical are experiencing."