LONDON -British finance minister Jeremy Hunt said on Friday that "extremely difficult" decisions were required to restore confidence and economic stability, after data showed that the economy shrank in the third quarter.
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"I am under no illusion that there is a tough road ahead – one which will require extremely difficult decisions to restore confidence and economic stability," Hunt said after official data showed the economy shrank by 0.2% in the three months to September, likely the start of a lengthy recession.
"But to achieve long-term, sustainable growth, we need to grip inflation, balance the books and get debt falling. There is no other way," he said.
Hunt's comments come ahead of the government's fiscal statement later this month in which the Treasury is expected to set out tens of billions of pounds in spending cuts and tax rises to fill a 50 billion pound hole in the country's public finances.
"While the world economy faces extreme turbulence, the fundamental resilience of the British economy is cause for optimism in the long run," said Hunt, who was appointed as chancellor last month.