According to the broadcaster, earlier in the day, Hunt refused to promise that the government would not abandon plans to increase defense spending to 3% of GDP by 2030, as Prime Minister Liz Truss had pledged. Hunt also added that the defense ministry, like other departments, would have to make additional savings.
The broadcaster noted that a defense source said that Wallace would demand the prime minister fulfil her obligations when asked if a U-turn on defense spending targets would prompt the defense secretary to resign.
Hunt was asked on Radio 4's Today programme if a "difficult tough decision" would be taken over the defense budget.
"We do need to increase defence spending, but I can't make a promise to you here and now about the timings of that. The long-term ability to fund an increase in defence spending will depend on stability in the economic situation and a healthily growing economy," Hunt replied.
On Friday, Kwasi Kwarteng announced his resignation from the post of the chancellor after reports leaked that he had been fired over a controversial tax cuts plan, which triggered a negative reaction from both markets and the general public. Later, former UK Secretary of State for Foreign and Commonwealth Affairs Jeremy Hunt was appointed as the next UK Chancellor of the Exchequer.
Jeremy Hunt Named New UK Chancellor After Kwasi Kwarteng Given the Boot
Markets had already perked up after rumours of a U-turn on Kwarteng's fiscal policies, with the pound climbing back to the $1.13 mark it held before his mini-budget last month, with government bonds rallying as well.
Downing Street has confirmed rumours former Foreign Secretary Jeremy Hunt, an opponent of Britain's exit from the European Union (EU) like Liz Truss, would replace Kwasi Karteng.
British Prime Minister Liz Truss sacked Chancellor of the Exchequer Kwasi Kwarteng ahead of an expected reversal of his mini-budget last month.
The chancellor, who had held office for just five weeks, resigned at Truss' request after being called back early from a meeting with the International Monetary Fund in Washington DC.
There was speculation that Kwarteng's reversal of his predecessor Rishi Sunak's Corporation Tax rise from 19 to 25 percent, a central pledge of Truss' summer campaign for the Conservative Party leadership, would be cancelled following a run on the pound Sterling and government bonds, known as gilts.
Markets perked up on the back of those rumours, with the pound climbing back to the $1.13 mark it held before the autumn spending review and gilts rallying.
Kwarteng tweeted his resignation letter shortly after his exit from 11 Downing Street was announced.
"When you asked me to serve as your Chancellor, I did so in the full knowledge we faced was incredibly difficult," Kwarteng wrote, listing rising global interest rates and the energy crisis as challenges.
But he warned Truss against changing course on economic policy.
"For too long this country has been dogged by low growth rates and high taxation — that must still change if this country is to succeed," Kwarteng wrote.
But the question of soaring national debt, to pay for state aid to households and businesses hit by the energy price crisis, remained unanswered.
Some economists have said the debt rather than tax cuts, prompted the crisis of confidence in the heavyweight British financial system. But Britons would face a cold winter, with many small firms going out of business, if the government's energy price guarantee scheme is cut back.
The energy crisis was precipitated by sanctions and export embargoes on Russia over its military operation in the Ukraine. Those sanctions were led by the US and enthusiastically followed by the EU and most of its members states.
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