JEREMY Hunt today hinted at yet another U-turn as he warned he was facing tough decisions on spending and tax.

The MP was appointed Chancellor yesterday after Kwasi Kwarteng was sensationally sacked following his catastrophic mini-budget announcement.

Mr Hunt today suggested public spending could go up – despite PM Liz Truss categorically saying this would not happen just two days ago.

He denied the UK would return to an austerity era but admitted "difficult" decisions needed to be made on spending and tax.

Mr Hunt told Sky News: "Spending will not go up as much as people want and there'll be more efficiencies to find and we won't have the speed of tax cuts we're hoping for, and some taxes will have to go up.

"That's the reality of the very challenging situation we face."

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The PM said in PMQs on Wednesday she is "absolutely" not planning public spending cuts and wanted to focus instead on how to "spend public money well".

But the Institute for Fiscal Studies warned cuts would be needed to put the country's finances on a sustainable path.

Mr Hunt also admitted today there would be tax hikes as he seeks to steady the market after a tumultuous few weeks for Ms Truss' administration.

He said: "Some taxes will go up. So it's going to be difficult. But as we take those difficult decisions, my priority, our values as a Government, will be to protect families, businesses, who are going through a very challenging time."

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The Chancellor also admitted the Government had made "mistakes" following the outcry over his predecessor's mini-budget that saw the Pound plummet.

In a humiliating climbdown, Mr Kwarteng and Ms Truss were forced to scrap the 45p tax rate after the country was plunged into fresh financial turmoil.

Mr Hunt said: "There were mistakes. It was a mistake when we're going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest.

"It was a mistake to fly blind and to do these forecasts without giving people the confidence of the Office of Budget Responsibility saying that the sums add up.

"The Prime Minister's recognised that, that's why I'm here."

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Ms Truss brutally axed Mr Kwarteng yesterday after just 38 days in the job – making him the second shortest serving Chancellor in history.

The Under-fire PM is now battling to keep her job following the biggest political meltdown for 300 years.

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