Sunak vows to protect mortgage holders but says he can’t “do it all” | Rishi Sunak

Rishi Sunak pledged to reduce the impact of rising inflation on mortgages, as he promised to rebuild confidence in the government.

The prime minister said inflation was “enemy number one” and that he was doing everything he could to “control” the issue.

Sunak told The Times he understood the concerns of families now facing crippling increases in their monthly mortgage bills, after the Bank of England raised key interest rates by 0.75 percentage points to 3% – their highest level in 15 years.

“I am fully aware of the concern people have about mortgages. It is one of the biggest bills that people have,” he said. “So what I want to say to people is that I will do everything I can to deal with this problem, to curb the rise in mortgage rates. .

I think inflation is enemy number one, as Margaret Thatcher rightly said. Inflation has the greatest impact on low-income people. I want to control inflation.”

The Bank of England was forced to raise interest rates to curb price hikes, and warned on Thursday that the country faced its longest recession in a century.

With an estimated £50 billion black hole in public finances, Sunak said it was important for the government to be honest with voters about the “trade-offs” the country faced in Chancellor Jeremy Hunt’s upcoming autumn statement.

Everyone appreciates that the government cannot do everything. How does the government do it all? It does so only by borrowing money, which ultimately leads, as we have seen, to higher inflation, loss of credibility, and higher interest rates.

The Daily Telegraph reports that among the measures Sunak and Hunt are considering to tackle the deficit are an additional two-year freeze on the pension allowance for life and a first-time value-added tax on electric cars.

Sunak acknowledged that after Liz Truss’ disastrous tenure at No. 10, the Conservatives desperately needed to rebuild public confidence.

He cited his record as an advisor – when he introduced the Covid leave scheme – on why people trust him when it comes to running the economy.

“I fully acknowledge that trust has been damaged over the past few weeks and months. I understand that trust is not given, trust is earned. My job is to restore people’s trust,” he said.

“The one thing people will take away from the summer — I hope from my track record as a consultant — I am someone they can trust who understands the economy. I am someone they can trust, who will guide us through what will be a difficult economic time. I have a proven track record of doing that.”

Aside from the fall’s statement, Sunak said the main issue on your mind over the past 48 hours has been the immigration crisis in the Channel Islands.

He defended Interior Minister Suila Braverman’s controversial claim that the southern coast was facing an “invasion” of migrants – although he did not use the word himself.

“What Suella has been doing is conveying a sense of the scale of the challenge we face, a serious and unprecedented challenge. There is no easy solution to this challenge overnight. But people should know that I am very committed to addressing it.”

He also revealed that he was at TGI Friday’s in Teesside when he learned that Truss was resigning.

He said, “On one hand, I had come forward, I was thinking about the next step for me. I was stuck in that.” But he said he felt he had a “responsibility and duty” to stand up after discussing the matter with his wife Akshata Murti.

He also said he had told Boris Johnson that he would not run on a joint ticket with him, saying: “I was very clear with him about the fact that I had the strong support of my colleagues in Parliament and I thought I was the best person to do the job.”