Former Chancellor Sir Jeremy Hunt has encouraged John Healey, the new Chancellor of the Exchequer, to avoid letting concerns over Liz Truss’s controversial mini-Budget from earlier this year prevent him from making bold economic decisions when he unveils his own plan in October. Hunt warned that only making small adjustments would be a "missed opportunity" for the UK. As the person appointed to address the damage caused by Truss’s economic policies, Hunt noted that the memory of her tenure has been a constant concern for chancellors since 2022. He emphasized that the first Budget of a new chancellor and prime minister is a crucial moment to set the tone and make tough decisions. Hunt suggested that significant steps, such as replacing the pensions triple lock with an inflation-linked system or boosting defense spending to 3% of GDP by 2030, could be key measures. However, he expressed concern that the upcoming Budget might end up being one where the government simply "muddled through" without clear direction. Recent economic forecasts from KPMG show that rising borrowing costs, driven by the Iran war and weaker economic growth, have cut the government’s fiscal flexibility by nearly £12 billion, down from £23.6 billion earlier this year. This leaves Healey with "limited room for manoeuvre" as he prepares for his first Budget on October 28. John Healey has faced pressure to reduce welfare spending to fund the proposed increase in defense spending. However, he has so far refused to make "crude cuts" to welfare, arguing that national security should not come at the expense of social security. Sir Jeremy Hunt believes this is a key moment for Healey to "win that argument" on welfare spending, stating that the current system is "totally unsustainable." Clean energy entrepreneur Dale Vince, a major donor to the Labour Party, has reportedly urged the government to align capital gains tax with income tax to raise revenue in the upcoming Budget. He also suggested ending interest payments from the Bank of England to commercial banks on their reserves and using the money to increase the personal tax allowance. However, Helen Miller, director of the Institute for Fiscal Studies, said that much broader tax reforms would be needed to generate sufficient funds. She also recommended considering changes to how inflationary gains and tax liabilities are handled for people leaving the UK. Sir Jeremy Hunt expressed skepticism about raising capital gains tax, saying it might not pass the "smell test" of being a fair tax increase. While he supports increasing the personal tax allowance, he warned that increasing capital gains tax based on location could be seen as unprogressive.