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Rishi Sunak says he is ‘totally, 100% on it’ in battle against inflation – as it happened | Politics


Sunak says he is ‘totally, 100% on it’ and, in battle against inflation, ‘we are going to get through this’

Rishi Sunak is speaking in Kent now at at PM Connect event.

He starts by referring to the interest rate increase. He says he knows people will be anxious about what is happening. He goes on:

I’m here to tell you that I am totally, 100% on it. And it is going to be OK and we are going to get through this and that is the most important thing I wanted to let you know today.

Key events

Afternoon summary

  • Sunak refused to say directly whether or not he agreed with conclusions of the privileges committee’s investigation into Boris Johnson, saying he wanted to “focus on the future”. (See 3.47pm.)

Rishi Sunak speaking at the PM Connect event at the Ikea distribution centre in Dartford, Kent.
Rishi Sunak speaking at the PM Connect event at the Ikea distribution centre in Dartford, Kent. Photograph: WPA/Getty Images

Yesterday a reader asked if there was any chance of George Osborne and David Cameron being recalled to give evidence to the Covid inquiry, for futher questioning about their statements on austerity, and its impact on Covid. A spokesperson for the inquiry says witnesses can in theory be recalled at any time, but that because of the tight timetable they are trying to “avoid recalling witnesses within a module wherever possible”.

How Sunak explained his three-point plan to bring down inflation

In his Today programme interview James Cleverly this morning struggled to explain what the government’s plan was for tackling inflation. (See 9.26am.) In his speech this afternoon Rishi Sunak sought the tackle the same question head on, and he insisted that he did have a plan “to halve it on its way to getting it back down to 2% where it belongs”. He said his plan had three elements.

For the record, here is an extract from what he said about those three aspects of the plan.

The first is I’ve got to make sure government is doing everything that it needs to do and that means being responsible with our borrowing, because we cannot in a situation like this borrow too much money, because that just makes everything worse.

That means, much as I would love to, I’d love to cut your taxes tomorrow, you’d love that, I’d love that, of course I would, but that’s hard to do, because it means I’d have to borrow more money to do it.

Another thing is I can’t say yes to every single thing that people want me to spend more money on, because that would mean we’d have to borrow money to do all of that. That means I have to make some difficult choices, I have to prioritise, the same as all of you do in your household budgets, I have to do the same thing too.

It means when we’re trying to figure out how we pay all our fantastic public sector workers, I need to think about what’s affordable, what’s responsible, again so I can manage our borrowing …

Now, the second part of the plan is making sure we tackle all those areas where inflation is particularly bad. Energy is an obvious one. The bills that you’ve had to pay over the last year have been extraordinary. Absolutely extraordinary, never seen anything like it. Now, I’m pleased they’re going to be starting to come down …

We need to have more energy, so we are investing more in renewable energy like offshore wind, building new nuclear power stations, but also making sure that we get more energy here at home from the North Sea, more oil and gas, which we are going to need for the next few decades as we transition to a cleaner future, so we are investing in that too.

Food is another area where your weekly shop has gone up far too much in the past few months especially, so we are looking at the supermarkets, making sure that they are behaving responsibly and fairly when it comes to pricing all those products, to make sure we are easing the burdens on your weekly shop …

The third part of the plan is helping those who most need help through the worst of this. Now, how have we done that? Most importantly, we’ve helped with your energy bills.

Here is the Guardian’s obituary of Winnie Ewing. It is by Brian Wilson, the former Labour MP, who describes Ewing as “the most remarkable vote-winner in modern Scottish politics”.

Today’s Bank of England interest hike means that by the end of the year more than a million househholds (4% of all UK households) will run out of savings because of higher mortgage repayments, says the National Institute of Economic and Social Research (NIESR).

In an analysis, it says:

1.2 million households (4%) will run out of savings this year as a result of higher mortgage repayments: taking the total proportion of insolvent households to around 7.8 million (28%).

The rising repayments will cost households with mortgages a total of £1bn per month, or £12bn per year: worth around 0.3% of GDP.

Monthly mortgage repayments will rise by nearly 50% on average: this rise is above typical stress-tests households are subjected to when applying for a mortgage,

Fixed-rate monthly mortgage repayments will rise from around £700 to £1,000 on average: applying to nearly 2m households when needing to remortgage.

Variable-rate monthly mortgage repayments will rise from around £450 to £700: applying to 1.5m households on variable-rate mortgages.

The largest impact will be in Wales and the north-east: 6% of households in these regions will be insolvent as a direct result of rising mortgage repayments.

The thintank says the government should respond by funding forbearance agreements. It explains:

The government could consider intervening in forbearance agreements, which allow households to agree to create repayment plans based on what they can afford when they’re unable to repay their debt. During the pandemic, the US government provided loans to assist in forbearance agreements for federally backed mortgages. The UK also has a track record in guaranteeing mortgages for particular high-risk households. Some investment could be done in these forbearance agreements, giving households and lenders the ability to create payment plans that work for each other.

Vallance tells Covid inquiry proper pandemic planning should involve willingness to spend money on projects that might fail

Sir Patrick Vallance, the former government chief scientific adviser, gave evidence to the Covid inquiry this afternoon. Here are some of his main points.

When we started the vaccine taskforce, it was very possible, even likely, that it would fail. And at the end of it, of course, it was a great success, and the National Audit Office wrote a report saying what a great success.

If it had failed, the National Audit Office I suspect would have written a report saying what an outrageous waste of public money the whole thing was. And yet both things were totally possible.

And so there is an inherent reluctance to spend money on things which then might fail and look like a disastrous misuse of public money.

So I think we need to be much more explicit about why spending public money is important for certain things, even if nothing turns out not to be what’s needed or used.

  • He said that Covid papers from Sage (the Scientific Advisory Group for Emergencies), should have been published more quickly. As the pandemic went on, early publication became more common, but it was not the practice at the start. Vallance said this was a mistake. He said:

I think in principle, the science advice – unless it’s national security-related – should become public.

One of the things we learned early during the pandemic, prior to pandemic, the minutes and output from Sage only were published at the end of the process of Sage activation. And quite early on I was keen to try and get the papers out as soon as we could.

It took longer than it should have done for that to happen, and that is, I think, a regret – and one that if you have the processes sorted out in advance should not be a problem in the future.

In other words, you should get those papers out as quickly as you can.

When we started looking at vaccines in January 2020, it was obvious that the industrial vaccine base in the UK had pretty much gone.

Not the simple store research but the industrial base, and I don’t think that was an active decision.

It was what are called benign neglect, with very significant consequences – and that had to be reactivated quickly …

Don’t dream that you can have a vaccine factory sitting there waiting for a pandemic – it’s going to be staffed by people who don’t know how to make vaccines.

You need everyday activities that you can scale quickly and I think this is a part of resilience that needs to be thought through very carefully.

Sir Patrick Vallance (right) leaving after giving evidence to the Covid inquiry at Dorland House in London.
Sir Patrick Vallance (right) leaving after giving evidence to the Covid inquiry at Dorland House in London. Photograph: James Manning/PA

Right to left: Rachel Reeves, the shadow chancellor, Danny Beales, the Labour candidate, and Keir Starmer, with residents campaigning in the Uxbridge and South Ruislip byelection today.
Right to left: Rachel Reeves, the shadow chancellor, Danny Beales, the Labour candidate, and Keir Starmer with residents campaigning for the Uxbridge and South Ruislip byelection today.
Photograph: Stefan Rousseau/PA

Sturgeon and Yousaf lead tributes following death of SNP trailblazer Winnie Ewing

Severin Carrell

Severin Carrell

Winnie Ewing, the former Scottish National party MP, MEP and MSP widely regarded as one of the movement’s most inspirational figures, has died aged 93. Flags at the Scottish parliament were lowered in her honour.

Ewing famously won the Hamilton byelection in 1967 to become the SNP’s first female MP, a breakthrough which marked the party’s arrival as a political force. When she arrived at the House of Commons, she stated: “Stop the world, Scotland wants to get on.”

Serving too as an MEP, when she became known as Madame Ecosse, and an MSP for the Highlands and Islands, she was something of a political matriarch: her son Fergus was a Scottish government minister and is now a backbench MSP; her daughter Annabelle has been an MP and MSP, and is now a deputy presiding officer at Holyrood.

Fergus Ewing’s late wife Margaret twice served as an SNP MP before becoming MSP for Moray.

Nicola Sturgeon, the former SNP leader and first minister, tweeted that Scotland had lost one of its “foremost patriots and champions”. She said:

Heartbroken by this news. I can’t begin to convey the depth of gratitude I feel for the advice, wisdom, encouragement and inspiration Winnie gave me and so many others over the years. She was a master of the art of campaigning and it was a privilege to learn from her.

Heartbroken by this news. I can’t begin to convey the depth of gratitude I feel for the advice, wisdom, encouragement and inspiration Winnie gave me and so many others over the years. She was a master of the art of campaigning and it was a privilege to learn from her. 1/ https://t.co/OfS2IlJd8x

— Nicola Sturgeon (@NicolaSturgeon) June 22, 2023

And Humza Yousaf, Sturgeon’s successor, said:

No words can truly capture the unique and unparalleled contribution that Winnie made to Scotland and Scottish politics. Her work over many decades – including in the UK, European and Scottish parliaments – shaped the modern nation we have today.

Without Winnie – without her breakthrough byelection victory in Hamilton in 1967, her dedication to the cause of Scottish independence, and her promotion of Scotland’s interests in Europe over many years – the SNP would never have achieved the success we have, and self-government for Scotland would never have become the priority it did.

In a statement, Ewing’s family said:

Mrs Ewing, generally considered the most important Scottish politician of her generation, served as an MP, MEP and MSP, and was the first presiding officer of the reconvened Scottish parliament in 1999.

She sparked the revival of the SNP’s fortunes, which continue to this day, with her victory in the Hamilton byelection of 1967.

Mrs Ewing died on Wednesday surrounded by her family.

Winnie Ewing arriving at the Houses of Parliament following her victory in the Hamilton byelection in 1967.
Winnie Ewing arriving at the Houses of Parliament following her victory in the Hamilton byelection in 1967. Photograph: Keystone-France/Gamma-Keystone/Getty Images

‘We’ve got to focus on future’ – how Sunak dodged question about whether he agrees with report saying Johnson lied to MPs

This is what Rishi Sunak said when asked by ITV’s Robert Peston if he agreed with the privileges committee’s report into Boris Johnson. He replied:

I have enormous respect for the privileges committee, support the privileges committee and indeed respect the vote of the house that we had on Monday regarding Boris Johnson.

But what I’d also say is that I’m not focused on the past. I want to look forward. Boris Johnson is no longer a member of parliament.

It’s right that people, whoever they are, whatever position they hold, face the results of their actions, that are held accountable for their actions. That’s happened. He’s no longer a member of parliament.

We’ve got to focus on the future. And that’s what I’m doing as your prime minister …

I wasn’t there to vote because I was at a charity dinner, as you know, but I am someone who took a very difficult decision a while ago to resign from Boris Johnson’s government.

It’s not an easy thing to do to resign as being chancellor. That’s kind of a big deal. I did that because, as I said at the time, I disagreed with his approach to government.

So that tells you that I’m prepared to act according to my values and the standards that I want to see, and that wasn’t happening.

I said I didn’t agree with the approach. I said that in my resignation letter, and that’s why I resigned.

Afterwards Peston said he felt Rishi Sunak had finally come off the fence.

Rishi Sunak says he respects the privileges committee and the Commons vote to censure Boris Johnson. The first time he has come off the fence since the report was published

— Robert Peston (@Peston) June 22, 2023

It is true that, in saying he had “enormous respect” for the privileges committee, Sunak was going a bit further than the line the No 10 press office has been using most of this week, when it said the committee had Sunak’s “full support”. The line about Johnson being held accountable for his actions also implied that Johnson got what he deserved.

But Sunak still would not say he agreed with the privileges committee’s report, despite his protestations only a few minutes earlier about the importance of “being straight” with people. (See 2.38pm.) And “we’ve got to focus on the future” was the ultimate non-answer. He is still dodging the question.

Robert Hutton from the Critic says this was a mistake because eventually Sunak will have to say he thought Johnson lied to MPs.

Starting to think that “Red Throat” story about Labour having a mole inside Number 10 is true, and the mole is in charge of the Blindingly Obvious Answers Unit. https://t.co/ScI5fsQXDc

— Robert Hutton (@RobDotHutton) June 22, 2023

In about five days, Sunak will finally crack and concede that Boris Johnson lied to Parliament, and that it would have been better if he hadn’t, and by that stage, he’ll just look fantastically weak.

— Robert Hutton (@RobDotHutton) June 22, 2023

My colleague Rafael Behr agrees.

Was thinking this too. He’ll end up being forced to concede one day that he *would have* voted for the report, at which point he gets all the pent-up scorn from Johnson ultras and zero credit for taking a stand.

— Rafael Behr (@rafaelbehr) June 22, 2023

Rishi Sunak speaking at a PM Connect event at the Ikea distribution centre in Dartford, Kent.
Rishi Sunak speaking at a PM Connect event at the Ikea distribution centre in Dartford, Kent. Photograph: Kin Cheung/PA

Rishi Sunak did not take a question from the Guardian during his Q&A with the media. It is not unusual for news organisations deemed unsupportive to be low on the list when questions are assigned, and Sunak may have been hoping for a more helpful question when he called Tom Harwood from GB News.

But Harwood asked if the fact that the Conservatives are distributing leaflets in the Uxbridge and South Ruislip byelection attacking plans to build 300,000 homes meant the government was no longer committed to this target itself. And he asked if some of Sunak’s own policies had contributed to inflation.

In response, Sunak ignored both points and just attacked Labour. (See 3.03pm.) Harwood was not impressed.

Sunak refuses to answer my question on Tory Party literature in Uxbridge attacking a 300,000 homes a year housing target.

Curious. #PMConnect

— Tom Harwood (@tomhfh) June 22, 2023

Also completely avoided answering whether his uprating benefits and pensions by 10.1%, and reinstating effective bans on onshore wind and shale gas exploration have proved inflationary.

Just spoke about Labour.

Makes the ‘I’m a different kind of politician’ claims ring hollow.

— Tom Harwood (@tomhfh) June 22, 2023

Sunak plays down prospect of tax cuts this year

Q: Is there no chance of major tax cuts this year?

Sunak says he would love to cut taxes. But borrowing lots of money to cut tax is not going to help anyone, he says. He goes on:

If I just gave into the easy thing every time, that would just mean more and more government borrowing, that just puts fuel on the fire of inflation and makes it worse, makes it last longer, means interest rates would go up even more. And that’s not going to do anyone any favours.

And you talk about tax cuts. You know what the biggest tax cut that this government could deliver for you and for everyone else is? To halve inflation. That is a massive tax cut, because it is inflation right now that is making everyone poor.

And that’s it. That’s the end of the Q&A.

Q: Has the Bank of England done too little, too late to deal with inflation?

Sunak says he supports the Bank. Countries around the world are facing these problems. In Europe interest rates are the highest they have been for 20 years.

He says there are no shortcuts.

Q: [From the BBC’s Chris Mason] Isn’t it the case that for some people things won’t be all right?

Sunak says he never said this would be easy. But he is determined to get inflation down. Inflation hurts those on the lowest incomes, he says.

It won’t be easy, and it will take time. But that is what responsible leadership is like.





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