Stefan Rousseau/PA
Andrea Leadsom has said the latest inflation figures have “obviously cheered everyone up” in the latest sign that the Tories are woefully out of touch with the electorate.
Inflation fell to 3.4 per cent in February, down from 4 per cent in January, with Chancellor Jeremy Hunt hinting the improved economic picture could result in tax cuts and reductions in interest rates.
But suggestions that the cost of living crisis is behind us have been widely ridiculed after Leadsom suggested the above-target rate of inflation shows things are looking up.
When asked on Sky News about whether the party was now united, Leadsom said instead: “I think what’s really important is we have seen a fantastic drop in inflation today. That’s what’s really important.
“That has obviously cheered everyone up, it’s what we have been working towards is seeing the cost of living crisis end … seeing people able to take more home in their pay packets or in their salaries every day. That’s the critical point.”
When Rishi Sunak became prime minister, he promised to halve inflation by the end of 2023 – becoming one of the only one of his five pledges he managed to fulfil.
However, economists question whether government’s can sincerely take credit for getting inflation back under control, not least since central banks control the base interest rate that is the key tool to combat price growth, and ministers blamed global factors when inflation spiralled to record highs.
What’s more, the PM’s other targets are falling way short of the mark.
The latest Office for National Statistics (ONS) figures show Government borrowing was higher than expected in February as debt remains at historical highs
Public sector net borrowing hit £8.4 billion last month, amid higher benefits payments such as cost-of-living support.
It was above the forecasts of economists, who had predicted net borrowing of £6 billion for the month.
Reducing government debt is one of the Tory’s key pledges heading into the next election.
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