Sunak says higher taxes and spending cuts needed to satisfy markets

UK PM and chancellor argue that financial markets have settled because they expect deep cuts to spending

The prime minister and the chancellor have attempted to prepare the ground for a bleak autumn statement, saying that everybody should expect higher taxes and arguing that financial markets were expecting deep cuts to public spending.

Speaking en route to the G20 in Bali, Rishi Sunak told reporters that the reason financial markets were no longer in turmoil was because they expected the government to clamp down on borrowing and squeeze spending.