Suunak cannot understand the “economic situation of households”.

The attack came during Prime Minister’s Question Time, which was dominated by the news that the inflation rate has not eased, remaining stuck at 8.7%. although experts forecast a drop to 8.4%.

That means the Bank of England will almost certainly hike rates tomorrow, causing even more suffering for mortgage holders.

CONTINUE READING: Inflation: Rate unchanged in May, new figures show

When Mr Sunak laid out his priorities for 2023 in January, the first was a pledge to “halve inflation this year to lower the cost of living and give people financial security”.

Mr Flynn told MPs: “In February the Prime Minister told this House that borrowing costs were back where they should be.

“In March he boasted that we were on track to halve inflation by the end of the year.

“And then in May he said that economic optimism was increasing. Given today’s grim economic reality, isn’t it clear that he took his honesty lesson from Boris Johnson?”

The Prime Minister pointed out that the Bank of England, the OBR, the OECD and the IMF had all upgraded their growth prospects for the UK economy.

“While he and others have predicted that this country would go into recession, the actions of this administration have so far prevented it and remain on the right track to keep inflation down because that is the right economic priority,” said he replied.

HeraldScotland:

“In listening to the Prime Minister’s response, I don’t think he fully grasps the reality of the economic situation facing households on this island. How could he?” asked Mr Flynn, referring to the Tory leader’s wealth.

Mr Sunak and his wife Akshata Murty’s fortune is estimated at around £529million, according to The Sunday Times Rich List 2023.

CONTINUE READING: Fergus Ewing faces loss of SNP chief over ‘Firing Lorna Slater’

Mr Flynn continued: “It shouldn’t have been like this. They do not exceed 6% because of the mortgage business in Ireland. It’s around 4.5%. Inflation in the euro area is not 8.7%, but closer to 6%.

“Britain is broke. Now seven years after the EU referendum. Will he finally admit that it was Brexit that broke it?”

Mr Sunak said interest rates in the UK are at similar levels to those in the US, Canada, Australia and New Zealand.

He said the rise in inflation and interest rates is “a global phenomenon”.

Mr Sunak said the government will cut inflation but that will require “difficult and responsible decisions”.

“This is what leadership looks like. I don’t think the SNP will ever do the same.”

Union leader Sir Keir Starmer also challenged Mr Sunak on inflation and mortgage rates.

He said Conservative policies were to blame for the “mortgage disaster.”

“Thirteen years of economic failure and a kamikaze Tory household that crashed the economy and sent mortgages soaring.”

CONTINUE READING: Barney Crockett leaves Labor over Keir Starmer’s oil and gas ban

Sir Keir said the “Tory mortgage penalty” would cost the average homeowner £2,900 a year.

“He was warned about it by experts back in the fall of last year, but either he didn’t understand it, he didn’t believe it, or he didn’t care because he certainly didn’t do anything, and when I brought it up a few months ago had the gall to stand by that shipping box and say he delivers for homeowners. What benefit does an extra £2,900 a year repayment bring to homeowners?”

Mr Sunak replied: “Perhaps he could explain why interest rates are at similar levels in the US, Canada, Australia and New Zealand and why they are at their highest levels in two decades in Europe.”

“So it’s important that we have a plan to reduce inflation, but what are we hearing from him in contrast?” He wants to borrow an extra £28bn a year, that would make things worse…. He doesn’t have many policies, but the few he does have all have the same thing in common: they’re dangerous, inflationary, and working people would pay the price for it.”

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