Pressure on to save the triple lock but Rishi won’t commit
RISHI Sunak has promised to put fairness “at the heart” of his attempt to balance the books as pressure intensified on him to save the triple lock.
The Prime Minister said he was working through “difficult decisions” with Chancellor Jeremy Hunt ahead of the Autumn Statement next month.
He has refused to commit to sticking with the formula that would give state pensioners a 10 per cent hike.
Thousands of people have signed a petition organised by the Daily Express and Silver Voices calling for the lock to be protected in the November 17 debt reduction plan.
Uncertainty over its future first arose after Mr Hunt was appointed Chancellor – but then former Prime Minister Liz Truss overruled him to say it would remain in place.
The lock was thrown into doubt again after Mr Sunak entered No 10 and Downing Street refused to confirm it still stands.
The Treasury is believed to be looking for savings of up to £50billion and tax hikes to fill the black hole in its coffers.
Mr Sunak said yesterday he was “confident” the Government could rectify the “mistakes” made under Liz Truss’s leadership, as he focused on bringing down inflation and limiting rises in interest rates.
During a visit to Croydon University Hospital in south London, he said: “What I want everyone to know is that we need to do these things so that we can get our borrowing and debt back on a sustainable path.
“That’s important because it means that we can get a grip of inflation. If we do that, it means we can limit as best as possible the increase in interest rates, which is important. But as we do that, I want people to be reassured, we will always do it with fairness at the heart.
“We will protect the most vulnerable and ensure that we can continue to grow the economy in the long run.”
The financial figures are not expected to be finalised until Mr Sunak and Mr Hunt receive the latest forecasts from the Office for Budget Responsibility.
A Treasury source said: “After borrowing and spending hundreds of billions of pounds due to Covid-19 and for energy bills support, there is a massive fiscal black hole to fill.
“People should not underestimate the scale of this challenge, or how tough the decisions will have to be.”
The triple lock pegs state pension increases to the highest of 2.5 per cent, wage rises or inflation. Inflation hit 10.1 per cent in September, the month traditionally used to work out next April’s rise.