Rishi Sunak is “making things worse” when it comes to Britain’s economy, senior Conservative MP David Davis has warned in a scathing attack on the Chancellor.
The former cabinet minister said Mr Sunak and his finance team had “no strategy” to deal with the mounting cost-of-living crisis following the Chancellor’s heavily criticized spring statement.
“What you are seeing is a headline-driven declaration of spring. In my view, there is no Treasury Department economic strategy,” Mr Davis told LBC on Sunday.
The senior backbench added: “The chancellor said: ‘I can’t solve everything’. What the chancellor is doing is actually only making things worse.”
Mr Davis said “quite a lot” of his Tory MPs felt the same way. “The truth is many of them will have trouble pushing back from their own constituents [on the cost of living].”
Amid a growing backlash over his spring declaration, Mr Sunak is reportedly weighing a further discount on council tax bills in a new multi-billion pound package after No10 made clear his “panic” over the cost of living.
“We’ve already looked at this and concluded that council tax is the best way forward,” a Treasury source told the Sunday Times. “They have an existing mechanism… It would make sense to do it that way again.”
Education Minister Nadhim Zahawi has hinted that Mr Sunak is planning further living expenses assistance in the coming months. “I think he’s going to keep that in mind, it’s only right,” he told Sky News on Sunday on Sophy Ridge.
He added: “It’s irresponsible for me to say ‘job done’ because energy prices are volatile and inflation remains high, so saying ‘job done’ would be totally irresponsible.”
It comes as union leaders warned that both schools and hospitals would suffer a “mass exodus” of staff unless public sector workers receive wage increases to match inflation.
Unison said if teachers, NHS workers and other public sector workers weren’t given “anti-inflationary” pay rises, they would be quitting for better-paying work in the private sector.
Meanwhile, opposition parties claimed a “swindle” meant some 1.3 million eligible families could miss out on Mr Sunak’s previously announced £150 tax refund.
They pointed to the Office for Budget Responsibility (OBR) forecast that 20 per cent of those who don’t pay their council tax by direct debit will not take advantage of the rebate – potentially saving the government £195million.
Local authorities warned they were not given extra funds to pay the rebate to those not paying by direct debit – prompting fears that some of the poorest and most vulnerable will not receive the tax cut.
Liberal Democrat leader Sir Ed Davey said: “It is staggering that over a million families will be left behind by the half-baked plans of this Conservative government.”
Rishi Sunak confronts mother who can’t afford to heat her house
Sir Ed added: “Rishi Sunak needs to confirm that anyone who misses the rebate will have their £150 check in the post. No one should miss out on the help they need because of the incompetence of this conservative government.”
Boris Johnson and his team are said to be “panic” over the impact of soaring food and energy bills ahead of local elections in May.
Downing Street special advisers have reportedly seen private polls showing the cost of living is now the UK public’s top public concern – surpassing the NHS and the health service.
Vicky Pryce, former head of the government’s economic service, said there were “major tensions” between No 10 and the Treasury Department over how to deal with the cost of living crisis.
She told LBC on Sunday that despite calls for more aid, the Chancellor “would like to be seen as someone who is bringing finances back to some sort of normalcy”.
Labor branded the Chancellor as “Mr. Tax” and accused him of “acting in his own interest” and not in the interest of the British people.
Shadow Works and Pensions Secretary Jon Ashworth gave it the nickname while warning that pensioners are “cutting down on hot meals” and “forgoing hot showers” as they can’t afford the expense.
A working analysis of Office of Budget Responsibility figures found that average households would be hit with increases of £3,000 by 2026/27.
Mr Ashworth told Sophy Ridge on Sky News on Sunday: “Rishi Sunak absolutely had more room for maneuver in this spring declaration and this mini-budget, but instead of acting in the interests of the British people he was playing games.
“He has acted in his own interest because he believes that an offer of an income tax cut in two years’ time will help him politically with Conservative MPs if there is a leadership contest or that fits the Tory electoral grid.”
The government will increase benefits by 3.1 percent in April – although annual average inflation is expected to be close to 8 percent. Mr Ashworth said it was a “very serious cut in real terms”.
Labor also said the analysis showed that hard-pressed pensioners with real losses of up to £427 next year would suffer the biggest cut in the state pension in half a century.
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