Speaking en route to the G20 in Bali, Rishi Sunak told reporters that the reason financial markets were no longer in turmoil was because they expected the government to curb borrowing and squeeze spending. “Economic conditions in the UK have clearly stabilized, but they have stabilized because people expect the government to take the decisions that will put our public finances on a sustainable path and it is the government’s job to achieve that,” Sunak said. . “And that’s what the chancellor will do.” Sunak and Hunt have not pledged to maintain the pension triple lock or upgrade benefits in line with inflation, but the Prime Minister said he was “cognizant of supporting the most vulnerable”. But he added that he must “decisively [be] meeting the expectations of international markets, especially to ensure that our fiscal position is on a more sustainable trajectory.” His comments came after Jeremy Hunt told Sky News’ Sophie Ridge on Sunday that he hoped to make the coming recession, which is predicted to be the biggest on record, “as short and shallow as possible” and that the government “will he asked everyone to make sacrifices”. “. Asked by the BBC if taxes were going to rise, he said: “We’re going to see everybody paying more tax, we’re going to see spending cuts, but I think it’s very important to say we’re a resilient country. “I think as Simon Schama would say, we’ve faced bigger challenges in our history before and we’re also a compassionate country.” He told Sky News: “I think what people are recognizing is that if you want to give people confidence about the future, you have to be honest about the present. And you have to have a plan. “This will be a plan that will help reduce inflation, help control high energy prices and also return to healthy growth, which is what we so badly need.” Sunak said he wanted to use the UK’s presence at the G20 to underline the group’s founding as an economic forum created in the 2008 crisis and to renew that purpose of international cooperation on the economy, despite Russia’s presence at the summit top that overshadows much of the feasible business activities. . He said the UK is not the only nation facing economic turmoil, a refrain he is set to use throughout his autumn statement to link UK problems to global issues such as Ukraine and energy prices. Labor said the UK was alone among the G7 countries in using austerity as a recipe to deal with potential recession. Despite a third of the world predicted to be in recession, Labor said the UK was experiencing particularly low growth due to Conservative policies, seeing the UK drop to the worst growth in the OECD behind Chile, Italy and Mexico. Asked whether the UK should be prepared for a prolonged and painful recession, Sunak said the autumn statement would determine how the UK recovers. “Part of our job is not just to restore stability to the system, which we will do, but it’s also to lay the foundation for the recovery and growth of the economy,” he said. “Ultimately, that’s what we all want to see. This way we will be able to reduce citizens’ taxes over time and support public services. And you’ll hear that side of the equation from the chancellor as well.” Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. John Glenn, the chief secretary to the Treasury, said ministers would seek to make savings by “eliminating waste”. He said the government could become “more efficient” by speeding up the sale of unused buildings, particularly “expensive properties in central London” and “turbo-charging” plans to digitize public services. Writing in the Sunday Telegraph, he said: “To keep delivering the things people care about in the face of inflationary pressures, without making the problem worse through extra spending, we need to make tough decisions and make government more efficient. This means eliminating waste. “It’s outrageous that public money – your money – is being absorbed into the system when it could be going to areas that really need it.” The shadow chancellor, Rachel Reeves, warned that “public services are already on their knees”. “Seven million people are waiting for an operation or NHS support … I don’t believe austerity 2.0 after the austerity we’ve had over the last 12 years is the right approach,” he said. Sunak will arrive in Indonesia on Monday evening for the G20 summit, which has been overshadowed by Russia’s presence, although President Vladimir Putin has withdrawn from attending. He will tell the assembled world leaders that Russia’s war in Ukraine has affected “every household on the planet” due to rising global food prices caused by choking off Ukrainian grain supplies as well as rising energy bills. Unveiling a five-point plan for the global economy, the prime minister will say support is still needed for the most vulnerable – including international aid – but heralded an end to broader support for middle-income families struggling with the cost of living. energy bills or mortgages ahead of the autumn statement. As the architect of the UK’s leave scheme, Sunak will now say that governments must “target government support where it is most needed… using government support effectively to prioritize the most vulnerable, both in our own countries and internationally ».
