Sunak-Tras showdown on inflation amid new ‘scary’ forecast
London, Thanasis Gavos
For fueling the “inflationary spiral” with the economic policy he promises, he accused Liz Truss her rival for the UK Prime Ministership Rishi SunaK.
The consumer price index in the country has now reached 10.1%. Today’s analysis of it Citi and formulates a “terrifying” prediction for increase in inflation at “stratospheric levels”, specifically at 18.6% in January.
Citi’s analysis is based on the forecast for dramatic further increases in the annual energy charge cap for UK households, from £1,971 today to £4,567 in January (and £5,816 in April).
Former Finance Minister Mr Sounak’s staff have warned that the cocktail of immediate tax cuts and extra help for households to tackle the austerity proposed by the current Foreign Secretary will put public finances “at serious risk” and all it will achieve will be is to increase inflationary pressures.
Until a few days ago Liz Truss proposed a way to deal with the cost of living crisis by cutting taxes. Finally, however, it also leaves open the possibility of aid to citizens.
Mr Sunak’s staff called on Liz Truss to pick and explain how he ultimately plans to help households, with him insisting that before taxes can be cut, runaway inflation must first be reined in.
Mr Sunak’s supporter MP Kevin Hollinrake said this morning that Ms Truss should stop promising a “magical money tree” and focus on how she will help the lowest income households. “These people will be on the street. That’s how bad things will be for some households,” the British MP warned.
Meanwhile, a poll on behalf of The Times among Conservative Party voters finds that they would prefer – at a percentage of 49 – Boris Johnson to remain as Prime Minister. This 49% is higher than the combined preference rate expressed by respondents for Mr. Sunak (20%) and Ms. Tras (18%).
However, according to the most recent poll of party members who are voting for Boris Johnson’s successor, Ms Truss has a clear lead with 66% to Mr Sunak’s 34%.
The best-known pollster in Britain, John Curtis, estimated that Rishi Sunak’s chances of winning are now only 5%, which is also reflected in the huge difference in odds at the bookmakers.
Voting by mail or online ends on September 2. The winner and next Prime Minister will be announced on September 5.
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