Rishi Sunak ‘knows his day are numbered’ – Chancellor warned tax must increase
Rishi Sunak 'knows his days are numbered' says expert
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The Chancellor is preparing for a tough spending review later this year as he attempts to repair the public finances following the coronavirus crisis. The attempt could put him on a collision course with the Prime Minister, who has promised there can be no return to austerity. David Buik, Market Commentator at Aquis Exchange, has warned Mr Sunak will have to tell Boris Johnson to stop spending.
Speaking to GB News, Mr Buik said: “Rishi Sunak knows that his days as the loved person of the party are numbered.
“He is going to have to say we’ve got to do this and we’ve got to cut the borrowing requirement.
“We’re very lucky because we’ve got this inflation that I think is going to be around 5.4 percent. Andrew Bailey from the Bank of England says it’s going to be about 4 percent.
“They’ve all said, gritting their teeth, I hope this is only temporary but they don’t want to put interest rates up.
“But what if they do have to? The cost of borrowing goes up, at the moment the cost is huge and we cannot afford to pay that.”
He added: “One of the things I think Boris Johnson wants is to keep spending, no. You cannot do it.
“It doesn’t matter if he asks Rishi to be Secretary of Health, he will decline it and if he bought back Sajid Javid as Chancellor or Liz Truss, they’ve got the same problem and they’re going to give Boris the same answer and the answer is no.
“We cannot keep spending money, we have to try and get some money back in and cut the borrowing requirement.”
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Allies of Mr Sunak have insisted he is focused on the health of the economy in his job as Chancellor following reports the Prime Minister has considered demoting him.
The Sunday Times reported that a furious Boris Johnson suggested the move after the leak of a letter from the Chancellor calling for the easing of travel restrictions ahead of the relaxations announced on Wednesday.
A senior source told the newspaper: “He said: ‘I’ve been thinking about it. Maybe it’s time we looked at Rishi as the next secretary of state for health. He could potentially do a very good job there.’
“In an open meeting, after ranting about Rishi, he then suggested the Chancellor could be demoted in the next reshuffle.”
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The newspaper reported that Mr Johnson is not expected to carry out his threat and noted the Prime Minister’s reputation for off-the-cuff remarks made “half in jest”.
A Treasury source said: “The Chancellor is solely focused on securing the country’s economic recovery and continuing to protect and create jobs.”
The leak of the comments, reportedly made in a meeting on Monday, will do little to help relations between No 10 and No 11.
Although a reshuffle is not expected imminently, the Sunday Times reported that Mr Johnson has previously considered International Trade Secretary Liz Truss as a potential chancellor, with Jacob Rees-Mogg as her deputy.
“The PM keeps talking about Liz Truss,” a source said. “He’s always got on quite well with her. He thinks she’s controllable.”
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