Rishi Sunak promises to put pressure on supermarkets to help cut cost of weekly shop – but rules out tax cuts

RISHI Sunak today vowed to put pressure on supermarket chiefs to help cut the cost of weekly shops.

And the PM ruled out tax cuts for Brits as he outlined his plan to tackle stubborn inflation.

Reuters

Rishi Sunak today ruled out tax cuts and endless handouts as he laid out his plans to tackle inflation[/caption]

AP

The PM set out his hopes for the economy at an IKEA distribution centre in Dartford, Kent[/caption]

Mr Sunak insisted it’s still possible to halve inflation by the end of the year – one of his five key promises to the nation.

But he admitted the tricky task has been made harder and will involve tough decisions.

It comes as this week the Office for National Statistics revealed inflation has stagnated at a nasty 8.7%.

And the Bank of England hiked interest rates to a staggering 5% in an effort to curb spiralling prices.

Addressing workers and reporters at an IKEA distribution centre in Kent, Mr Sunak argued slashing taxes and endless handouts would only worsen inflation.

The PM warned: “I’ve got to make sure government is doing everything that it needs to do and that means being responsible with our borrowing.

“We cannot be in a situation like this and borrow too much money because that just makes everything works.

“I’d love to cut your taxes tomorrow. That’s hard to do because I’m going to have to borrow more money to do it.”

He added: “I can’t say yes to every single thing that people want me to spend more money on.”

Mr Sunak admitted saying no to tax cuts was tough.

But he insisted “if I just gave into the easy thing every time, that would just mean more and more government borrowing”.

This in turn “puts fuel on the fire, makes inflation worse and pushes up interest rates even higher.”

As part of his plan to soften the major inflation blow, Mr Sunak promised to pressure on supermarket chiefs not to unnecessarily sneak hefty costs onto consumers.

He said: “We’re looking at the supermarkets making sure that they’re behaving responsibly and fairly when it comes to pricing all those products, to make sure that it eases the burden on your weekly shop.”

Next week Jeremy Hunt will meet with regulators to discuss how ministers can ensure falls in input costs are definitely passed onto consumers.

The Chancellor will also discuss what actions regulators are taking, and how more can be done to reduce inflation and ease the cost of living squeeze.

The PM promised Brits that “we’re going to get through it”.

“I’m totally 100% on it,” he insisted.

“It’s going to be ok.” 

But Mr Sunak added: “It’s not easy.

“Stamping out inflation is not easy. It requires difficult decisions and doesn’t happen overnight.

“But if we don’t get on top of it, it will just get worse and it will last longer.

“That’s not going to do anyone any favours, it’s not going to be good for you and your families in the long run.”