Jeremy Hunt may still have to find £40bn of cuts as chancellor, say experts

Kwarteng's replacement is warned of inflation impact, crumbling services and financial black hole' that he has two weeks to fill

Liz Truss's new chancellor, Jeremy Hunt, may still have to draw up spending cuts worth up to 40bn to convince markets the government can balance the books, experts warned after Friday's humiliating U-turn.

Speaking at a Downing Street press conference, Truss dropped a heavy hint of austerity to come, saying: Our public sector will become more efficient, to deliver world-class services for the British people, and spending will grow less rapidly than previously planned."