Sunak refuses to say if he will follow fiscal rules from manifesto

POLITICS: Tories had stated the party would not borrow to fund daily spending

The chancellor of the exchequer has refused to confirm whether he will stick to the fiscal rules set out in the Conservative manifesto when he delivers his first Budget this week.

Rishi Sunak said he believes “very much” in the responsible management of public finances, but declined to comment on whether the government will abide by its election pledges.

Mr Sunak, who has been in office for less than a month, will outline his financial plan to MPS on Wednesday.

He insisted the government is ready to deliver “whatever action is required” to deal with the Covid-19 outbreak, and has pledged to give the NHS the resources it needs to respond.

Mr Sunak also vowed to give smaller businesses “short-term” support to weather the outbreak, saying he wants to provide a “bridge through a temporary period of difficulty so that they can emerge on the other side”.

But he refused to say whether he would adhere to the fiscal rules – parameters to limit tax and spend excesses – in the first Budget of the new government.

The Conservative manifesto for the election stated the party would not borrow to fund day-to-day spending and would ensure debt is lower in five years’ time.

Mr Sunak said he could not “comment on the exact forecast until Wednesday”, though he told The Andrew Marr Show: “I believe very much in the importance of fiscal responsibility, about responsible management of our public finances.

“And as I’ve made the point before, it’s because there’s been very strong management of public finances over the last 10 years by successive Conservative chancellors who have made some difficult decisions that means I can sit here today and say I will invest what it takes to get us through this because our public finances are in a good spot.”

Elsewhere, the Treasury said Mr Sunak is set to double funding for flood defences to £5.2 billion.

The investment will build 2,000 new flood and coastal defence schemes and better protect 336,000 properties in England over the next six years.

Mr Sunak said communities in Britain have been “hit hard” by severe flooding this winter, saying it is “right that we invest to protect towns, families, and homes across the UK”.

The funding, which doubles the £2.6bn spent on flood defences between 2015 and 2021, is expected to be targeted in every region, and will be available from next April.

Picture: PA. Chancellor of the Exchequer Rishi Sunak would not be pressed on whether he would adhere to the fiscal rules set out in his party’s manifesto.