RISHI Sunak has warned millions of public sector workers not to expect bumper pay rises – saying he was willing to be unpopular to tame stubborn inflation.
The PM said there was “no point doing something that sounds popular and nice” but which would ultimately fuel further price rises.
Rishi Sunak has said he will not shy away from making unpopular choices
A row has erupted after it emerged he was preparing to overrule the independent pay review bodies if they recommended a six per cent salary hike for workers.
Risking a fresh clash with unions, a steadfast Mr Sunak said big pay rises would be “giving with one hand and taking with the other through higher inflation and interest rates.”
Echoing Margaret Thatcher, he said: “There isn’t an alternative to stamping out inflation.”
Mr Sunak has staked his career on halving ripping inflation – currently at 8.7 per cent – by the end of the year.
His tight hold on the purse strings has seen Ministers face criticism for not stumping up enough support for families, especially those facing mortgage misery.
But Mr Sunak insisted: “We’ve got to hold our nerve, stick to the plan and we will get through this.”
Despite fury from many Tory MPs, the PM said he “fully” backed the Bank of England aggressively jacking up interest rates and squeezing homeowners.
But he offered just lukewarm support for its under-fire Governor Andrew Bailey and would not say he was doing a “good job”.
In the strongest sign yet he could block the big salary increases for public sector workers, Mr Sunak said he would make the “responsible” choice.
The PM said: “Now that may not always be popular in the short term, but it’s the right thing for the country.” He yesterday insisted he will win the next election.
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Shadow minister Lisa Nandy yesterday also refused to commit that Labour would wave through the body’s recommendations.
She said: “We’d take seriously their recommendations but we wouldn’t be bound by them.”
During a testy BBC interview Mr Sunak denied claims he was living “in a parallel universe” and said he was making the “right decisions” in the long-term.
He said: “I could sit here and tell you we could wish it all away, that there was some easy overnight fix, we didn’t have to put up interest rates unlike every other country.
“I could pay everybody exactly what they wanted, we could spend on everything that we wanted, borrow without abandon.
“I would not be being honest with the country if I said that. That’s not leadership.”
Former Chancellor Kwasi Kwarteng yesterday rubbished suggestions that a recession was a price worth paying to wrestle down inflation – saying that would be “mad”.
On Wednesday Jeremy Hunt will meet regulators to ensure falling prices like energy are being passed onto consumers.