The new Prime Minister is likely to delay the announcement of plans to fill a £40billion black hole in the public finances, The Times reports today.
Chancellor Jeremy Hunt is working on plans to balance the books that involve either cuts to public services or tax rises.
He was expected to reveal details on October 31, but with the Tory leadership contest ending three days earlier the new Prime Minister is now expected to review the proposals.
It means that there is likely to be a delay in publishing the plans and the official forecasts from the Office for Budget Responsibility.
The announcement was intended to help stabilise the markets and inform the Bank of England’s decision on interest rates on November 3.
The Institute for Fiscal Studies warned this week that while the cuts needed by Hunt are likely to be “slightly smaller” than those imposed by George Osborne’s austerity programme, they will be much tougher to find after a decade-long squeeze on budgets.