CHANCELLOR John Healey must cut spending in his first Budget instead of hiking taxes, Rishi Sunak said.

The former Prime Minister said his successor in the Treasury should signal to the he will control public spending.

Chancellor of the Exchequer John Healey arrives in Downing Street, holding a red document.New Chancellor John Healey will deliver his first Budget on Wednesday October 28 Credit: Getty Britain's Prime Minister Boris Johnson (left) and Chancellor of the Exchequer Rishi Sunak (right) smiling at the House of Commons.Rishi Sunak served as Chancellor in Boris Johnson’s Government during the pandemic Credit: AFP Portrait of Jonathan Reynolds, Secretary of State for Business and Trade.Labour’s Business Secretary Jonathan Reynolds has announced a plan to slash red tape Credit: Getty

Mr Sunak wrote in The Sunday Times: “He should make clear that he’ll not increase taxes in the budget and that if adjustments need to be made, he’ll cut spending.

“That would provide the certainty needed in an increasingly uncertain world.”

He said Mr Healey must avoid repeating the mistakes of with “constant, confidence-sapping speculation about which taxes will rise”.

The new Chancellor will give a speech on Monday in the West Midlands outlining his vision for economic growth.

However, he set a gloomy tone in an interview with the Financial Times in which he warned of a tough Budget this due to the war.

He said: “What’s happening in the Middle East is hitting , it’s hitting growth, it’s hitting borrowing costs. It’s part of a more dangerous world that is more uncertain.”

His tone is in stark contrast to bouncy Prime Minister who entered No10 with costly ambitions to please voters.

Shadow Chancellor warned: “It would be completely wrong for to raise taxes on hard working families.

“Especially given our people pleasing Prime Minister will only use the for more handouts rather than defending our nation.”

It comes as the Government announced a plan to free businesses from costly red tape.

They promised to slash complicated reporting rules under a change that will save businesses more than £450 million a year in total.

Currently, the rules require small cafes chains and hotels to spend thousands on wordy reports.

Business Secretary said: “No-one goes into business to fill out forms.

“For years, hardworking firms in this country have been weighed down by pen-pushing paperwork and frustrating costs, ticking boxes that do nothing to help them grow their business.

“We’re stripping back outdated bureaucracy and building a common-sense system fit for a 21st-century economy. This will cut the cost of doing business, giving breathing room to bosses across the country, and free them up to focus on what they do best, creating and growth.”