ishi sunak has denied that his path of tightening fiscal policy would lead to a recession, as he claimed rival Liz Truss’ plans for massive tax cuts would trigger a “sugar rush”.
The hopeful Tory leadership was put to the test for nearly half an hour about his wife’s economy, immigration and tax status by an experienced political journalist Andrew Neilwith whom Mrs. Truss has so far refused to sit down.
Sunak used the Channel 4 interview to take a fresh look at Ms Truss’ approach to taxation, an issue that has dominated the bitter race for number 10.
There is a finite number of asylum seekers that we can integrate
Neil challenged the former chancellor over his plans to tighten fiscal policy at a time when “the global economy is stalling as monetary policy has tightened”, suggesting that he would “set a recession”.
Mr Sunak said: “I think it is absolutely the right choice not to add fuel to the inflation problem we already have.
“What we need to do is focus on long-term growth because that’s what we need, sustainable growth, not a sugar rush that makes us feel better for months, but then things get out of hand, let inflation kick in. system come. , let the Bank of England respond with even higher interest rates.”
Sunak said a recession was “not the prediction of the majority of most independent forecasters here in the UK”.
He reiterated that his priority was to “get a grip on inflation as soon as possible, because inflation makes everyone poorer”.
Mr Sunak also defended his policy of raising national insurance thresholds as “undoubtedly, objectively progressive” when Mr Neil suggested punishing employees, denying his promise to VAT on utility bills was a U-turn showing “bad judgment”.
Neil asked him: “In February you told the commons that a reduction in VAT on energy bills, in your words, ‘would disproportionately benefit high net worth candidates’.
“Now that your campaign isn’t catching on with Tory members, you’re proposing to suspend VAT on utility bills — not just a bad judgment, but a lack of consistency.”
Mr Sunak replied: “No, absolutely not. I’ve always said from the beginning that if we knew more about what the energy bill would be in the fall, I’ll be ready to do more.”
On immigration, the former chancellor said there is a “finite number” of asylum seekers the UK can accommodate.
He rejected Mr Neil’s claim that his proposed limit on the number of asylum seekers accepted each year is “unsavory” as he called for an “orderly” and “supervised” system for taking people in.
Neil urged him on why he wanted to turn down “even legal asylum seekers.”
Mr Sunak replied: “Because there is a finite amount of asylum seekers that we can integrate and accommodate.
“At any point, Andrew, there are probably a billion people who would like to move to the UK because this is a great country, so obviously we can’t all accept that.”
The millionaire’s ex-chancellor looked awkward as he brushed aside questions about his wife’s previous non-resident tax status — a scheme that has reportedly saved her millions, saying, “I’m the one running to the office and not my wife.”
Mr Sunak sought to regain his position in the leadership race after rival Mrs Truss received a key endorsement from Defense Secretary Ben Wallace.
Asked during a visit to Norfolk on Friday if she was sure she was now ready to win the match, the Minister of Foreign Affairs said: “I am not complacent at all. I’m fighting for every vote across the country.”
In a thinly disguised swipe at the former chancellor’s track record, she said it would be “risky” for the country to continue on its current economic path.
Ms Truss said the way to get growth is to “help people and businesses keep more of their own money”, saying that “avoiding a recession should be the number one priority”.
She said: “What is risky is continuing on the same economic path that is currently expected to lead us into a recession. That is the risk.
“What I’m talking about is unleashing opportunity, unleashing growth, keeping taxes low. As a result, the economy will grow and we will be able to repay our debts faster.”
When asked if she would watch the interview with Mr Sunak on Channel 4, Mrs Truss said she would be celebrating her wedding anniversary.
She told reporters: “Today is my wedding day. So I celebrate being married to my husband for 22 years.”
They were questioned separately on a range of policy areas on Thursday in hustings with Tory members, the first of 12 sessions for the party faithful across the country to grill the final two contenders, before voting for the next Tory leader and prime minister on September. . 2.