UK Inflation latest: Rishi Sunak says UK economy ‘number one priority’ as prices surge

On the autumn budget tomorrow, Rishi Sunak explained what Jeremy Hunt would set out to achieve.

He said the chancellor’s plan would be to “get the country on a positive trajectory, put the public finances on the right footing and get debt falling”.

We’re now onto questions from the press.

When asked what his number one challenge is, Rishi Sunak said: “My absolutely number one priority is to deal with the economic situation that we face at home”.

He said: “With more news on inflation today, it’s the number one thing on people’s mind. It’s the thing that is causing most anxiety. Opening up bills, seeing the emails come in with rising prices. And that’s why it is right that we grip it.”

“Economic stability and confidence are at the heart of the government’s agenda,” Rishi Sunak said as he moved onto UK politics.

He said this would be achieve by being a “constructive and reliable member of the international community” to keep prices down.

Rishi Sunak said that as long as the war in Ukraine continued “it poses a threat to our security and that of our allies”.

And “it will continue to devastate the global economy”, he told a press conference at the G20 summit in Bali.

Rishi Sunak is now speaking at the G20 summit.

The British Chambers of Commerce (BCC) warned of a “lethal combination of recession and runaway inflation” unless Jeremy Hunt acts.

BCC head of research David Bharier said: “While the Bank of England seeks to control inflation through further interest rate rises, this is a blunt instrument that fails to address the core drivers of inflation for most firms: soaring energy costs, global supply chain disruption, and rising staff costs due to labour shortages.

“Ahead of tomorrow’s autumn statement, businesses will need to see a clear plan from the Chancellor to boost business investment and growth, as well as targeted measures that ease the specific causes of inflation.

“The UK economy otherwise faces a lethal combination of recession and runaway inflation.”

Liberal Democrat Treasury spokeswoman Sarah Olney said the government’s “biggest economic failure has been their disastrous attempts to get inflation down”.

She said: “Families are now struggling to get by because of this Government’s inaction and incompetence on spiralling prices.

“After inflicting so much chaos, the latest Conservative chancellor is now expecting the public to clean up their mess with grossly unfair tax rises.

“Our crumbling hospitals and run down classrooms are on the brink of savage cuts all because the Conservative party crashed the economy to fund tax cuts for the richest companies. The country will never forgive them for this.

“This week Jeremy Hunt should target the oil firms and banks making bumper profits to fill the blackhole in Britain’s finances, rather than inflicting more pain and misery on struggling households.”

Rishi Sunak and Joe Biden did not discuss a UK-US trade deal in their bilateral meeting at the G20, Downing Street has said.

The prime minister’s press secretary told reporters in Bali: “There wasn’t specific talk about a trade deal, but our relationship is not just about trade and they are our closest trading partner even without a trade deal.

“But you know, it goes beyond that, whether that’s security, whether it’s dealing with the economic challenges that we face.”

Asked if that meant a trade deal was not a priority for the PM, she said: “Obviously our close relationship and as one of our biggest trading partners that is a very important part of our relationship.”

She also declined to comment on the timing of a potential agreement.

Rishi Sunak said it was important to remain calm and to establish the facts after a missile hit Poland close to the border with Ukraine.

Speaking at the start of a session on digital transformation at the G20 summit in Bali, the prime minister said it was “critical” to protect the international order.

“It is important that we remain calm and focus on establishing the facts,” he said.

“I spoke to President Duda this morning to express my sympathy and pledge our support.

“As I said yesterday, it is critical we protect the international order and the fundamental principles of the UN Charter.”

Downing Street has declined to comment on reports that the missile that hit Poland was fired by Ukrainian forces at an incoming Russian missile, saying that the facts needed to be established first.

The prime minister’s official spokesperson said: “Certainly the incident was looked at and discussed at the G7, I think, on all sides there’s agreement there needs further investigation before any conclusions are drawn.

“It’s important to look at the facts and establish the facts in the first instance before coming to any conclusions.

“None of that changes what we know has happened which is a substantial missile attack into Ukraine from Russia targeting civilians and civilian infrastructure.

“It’s a barbaric attack, particularly coming at a time when world leaders are meeting shows the continued contempt Putin shows towards international order.”