New Chancellor Jeremy Hunt, has said that mistakes have been made by the government as he indicates that tax rises are on the way.

Mr Hunt replaced Kwasi Kwarteng as Chancellor on Friday by Prime Minister Liz Truss following weeks of fall-out over the mini-budget.

Speaking to Sky News in his first interview since his appointment on Saturday, the new Chancellor of the Exchequer admitted: “There were mistakes.

"It was a mistake when we’re going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest.

Oxford Mail: PAPA (Image: PA)

“It was a mistake to fly blind and to do these forecasts without giving people the confidence of the Office of Budget Responsibility saying that the sums add up.

Jeremy Hunt admits government made mistakes in first Chancellor interview

“The Prime Minister’s recognised that, that’s why I’m here.”

Continuing in the interview, the former Health Secretary suggested that tax rises could be coming as he seeks to steady the markets following a disastrous few weeks for Liz Truss's administration.

He told Sky News: “We will have some very difficult decisions ahead. Spending will not rise by as much as people would like and all Government departments are going to have to find more efficiencies than they were planning to.”

“And some taxes will not be cut as quickly as people want.

“Some taxes will go up. So it’s going to be difficult. But as we take those difficult decisions, my priority, our values as a Government, will be to protect families, businesses, who are going through a very challenging time.”

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Jeremy Hunt denies UK is returning to austerity era

Mr Hunt denied that the UK was returning to an austerity era, but he did admit that “difficult” decisions needed to be made on spending.

“I don’t think we’re talking about austerity in the way we had it in 2010 when I was also in the Cabinet.

“But we are talking about very difficult decisions in budgets where there is already a great deal of pressure.”

The Chancellor also did not make any "specific commitments" in the interview which marks his first day in the Chancellor's office ahead of his fiscal statement on October 31.

He added: “I’m not going to make any specific commitments about specific departments now, or indeed on the tax side about specific taxes because we have to look at these things in the round.

"And we have to make sure as we take these very difficult decisions, we’re honest with people about the situation we face.”