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Rishi Sunak hit by cabinet revolt over huge government spending

RISHI Sunak was hit by a huge cabinet revolt over bloated government spending.

High-ranking figures call for measures to curb inflation and warn the Chancellor he risks a return to the 1970s if the crisis is not addressed.

Rishi Sunak was hit by a major cabinet revolt over bloated government spending

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Rishi Sunak was hit by a major cabinet revolt over bloated government spending
Sources Say Jacob Rees-Mogg Explained'We Overspend'

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Sources Say Jacob Rees-Mogg Explained ‘We Overspend’

Mr Sunak, at a heated cabinet meeting on Wednesday to sign off his Spring Statement planshas faced calls to drop last October’s three-year spending review.

The massive cash increase took the NHS budget to £180billion a year, with a £150bn in additional spending across Whitehall.

Police Secretary Kit Malthouse led the charge this week and suggested the spending review be suspended in light of the fallout from the Ukraine war and rising inflation.

He argued that high government spending was no longer sustainable and risked a major debt crisis.

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And he was supported by Brexit Secretary Jacob Rees-Moggthe source said, “We’re overspending.”

In a separate row Boris Johnson took a dig at the chancellor’s mini-budget plans to warn “we must do more” to ease the cost-of-living crisis.

But No10 insisted the Prime Minister and Chancellor “are as one when it comes to financial plans”.

Meanwhile, pundits shredded Mr Sunak’s claims of being a tax-cutting chancellor in a scathing assessment of tax plans on Wednesday.

The Institute for Fiscal Studies said “almost all workers will pay more tax in 2025 than they would have paid” if Mr Sunak had not meddled with income tax and Social Security.

IFS chief Paul Johnson claimed that rising inflation would ensure that tax revenues would continue to rise.

He added that the pressure on living standards forecast by the Office for Budget Responsibility meant an average earner of £27,000 a year will be £360 worse off in the next financial year.

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Mr Sunak had claimed raising the NI threshold to £12,750 was “the biggest single tax cut for individuals in a decade”.

The IFS boss called him a “fiscal illusionist” and added: “If he wants to be remembered as a tax reform chancellor, he is going in the wrong direction so far.”

Police Minister Kit Malthouse argued that high government spending was no longer sustainable

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Police Minister Kit Malthouse argued that high government spending was no longer sustainable

https://www.thesun.co.uk/news/18059527/rishi-sunak-spending-cabinet-revolt/ Rishi Sunak hit by cabinet revolt over huge government spending

Bobby Allyn

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