Borrowing will hit £177 billion (NZ$343) - 7.1 per cent of GDP.
Delivering the Autumn Statement on Thursday UK time, he said the UK faced “unprecedented global headwinds”.
His plans will “tackle the cost of living crisis and rebuild our economy”, he claimed.
His new policies include bringing down the top threshold for tax, meaning people earning more than £125,000 (NZ$242,000) will now pay 45 per cent in tax.
Previously, the highest rate of tax only affected those earning more than £150,000 (NZ$290,000).
“We’ll still have the most generous set of tax-free allowances of any G7 country,” Hunt insisted.
Energy firms profiting amid the cost of living crisis will also face higher taxes on their profits, at 35 per cent, raising an estimated £14 billion (NZ$27b).
Hunt said the government had been forced to make “difficult decisions” to tackle inflation.
“[Inflation] erodes savings, causes industrial unrest, and cuts funding for public services,” he said.
“It hurts the poorest the most and eats away at the trust upon which a strong society is built.”
He added that the UK was facing “a global energy crisis, a global inflation crisis and a global economic crisis”.
“But the British people are tough, inventive and resourceful. We have risen to bigger challenges before.
“We aren’t immune to these global headwinds, but with this plan for stability, growth and public services, we will face into the storm.”
And he said that “families make sacrifices every day to live within their means, so too must governments because the UK will always pay its way”.
Hunt has only been in the job for a matter of weeks.
He was appointed by former prime minister Liz Truss as she battled to save her job after her financial plans led the pound to plunge and caused mortgage rates to soar.
She resigned and was replaced by Rishi Sunak, who kept Hunt in his post. - news.com.au
