Rishi Sunak says he ‘stands ready’ against inflation
Rishi Sunak has vowed that he’ll maintain “discipline” on public spending and tax, in order to continue bringing down inflation.
The Prime Minister promised that he “passionately believes” he can revive the UK economy, and is “really optimistic” and “confident” about the years ahead.
Asked by The Times whether people will feel better off this time next year, Mr Sunak said: “That’s my job, to make sure that not just happens but they feel that that’s happening.
“You can start to see now that there is a prospect of wages growing faster than inflation going forward.”
The Government was buoyed by figures published this morning showing inflation fell from 7.9 percent to just 6.8 percent last month, putting the Prime Minister well on the way to meeting his target to halve inflation.
READ MORE: Inflation figure makes Bank of England interest rate rise ‘more likely’
Following the news, Britons’ pay packets are now on track to be rising faster than the CPI rate of inflation, for the first time in 19 months.
Pay exceeding bonuses increased a record 7.8 percent in June, and is expected to beat today’s 6.8 percent inflation when the figures are released.
The Prime Minister added: “I’m really proud of our country and what makes us special.
“I’m really optimistic about the future.”
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Mr Sunak also took a swipe at Labour leader Sir Keir Starmer, accusing him of “abdicating” his responsibility over inflation by pledging a £28billion investment plan in green energy, and refusing to rule out future public sector pay rises.
He added Sir Keir has failed to be “clear” on inflation, saying that’s the “massive contrast between me and him”.
“The biggest economic challenge is inflation. Not having an answer that’s clear, that’s unequivocal, that you believe in is an abdication of leadership. That’s a massive contrast between me and him.”
The PM said he was the “right person” to lead the nation, but batted down calls from some in his party for immediate tax cuts.
He added that not spending on public sector pay or “unfunded tax cuts” are part of “being disciplined with the nation’s finances”.
Mr Sunak also confirmed to The Times that the pension triple lock will rise in line with inflation, setting pensioners up for another whopping increase of 7 percent, after this year’s 10.1 percent rise.
The Prime Minister is staying resolute on the policy, despite warnings such an increase will cost £2billion.
Also speaking to ITV today, Mr Sunak promised the economy would eventually respond to higher Bank of England interest rates, but said there will be a “lag” between rate rises and their effect.
“There’s always a lag between an interest rate decision and the effect it has on the economy, and that will take a little bit of time.”
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