Chancellor Rishi Sunak has said it would have been “irresponsible” for the Government to have borrowed more to raise benefits in the face of rising inflation.
However, his comments about the £200 given to people already in fuel debt, which they have to pay back, otherwise known as a loan, are pretty bizarre.
Appearing before the Commons Treasury Committee, Mr Sunak defended the choices he had made in last week’s spring statement.
The committee chairman, Conservative MP Mel Stride, said the Chancellor had done “very little” for those who were out of work and relying on benefits.
Mr Sunak said: “If someone’s view is Government can or should make everybody whole for inflation – particularly inflation at these levels caused by global supply factors – then that’s something that I don’t think is doable.”
Mr Sunak said his decision to announce he intended to cut the basic rate of income tax from 2024 would inject “discipline” into the debate about public spending levels.
“Now having something to aim for means that hopefully we can have a more disciplined conversation about incremental public spending at this point, which is already at very high levels,” he said.
“My priority at this point forward is to keep cutting taxes, not increased public spending.”
Loan?
Sunak appeared unhappy with Alison Thewliss’s question about the £200 to cover rising fuel costs. She asked the Chancellor people ‘are being asked to take on another £200 of debt?’
However, Sunak didn’t agree he said “it isn’t a debt or a loan”.
His argument is that there is no interest charged on it, so it is neither.
As most people will know finance is given by lots of retailers at zero interest rate, to help them pay for their goods. In doing so they take on a debt.
Or even easier, you lend a tenner off your mate, unless your pal is a weirdo and charges you interest’ if so maybe rethink your friendship group, you will give them back £10 at a later date.
Either way, Thewliss then commented: “If I give you money & it’s expected to be paid back, it’s a loan.. better off with a grant.”
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