buildings behind me, that these are significant rises. the government had said it could only afford 3.5%. so they are doing a couple of things to raise a bit of extra cash. rishi sunak insisting they are not going to borrow extra money, forfear of stoking inflation, they are going to increase charges for migrants who want to apply for visas to come to the uk, and also for them to access the uk, and also for them to access the nhs. he said that would raise £1 billion. that will only go so far. the individual government departments affected, from the home office to education, are going to have to find some savings. bear in mind the current settle disputes about last year s pay offer are also to do with a general feeling among public sector workers that the services they work for are not properly funded. so potentially here the government are setting up for another row with the unions in the months to come. another row with the unions in the months to come. peter, thanks for that. the b
chief chancellor of the exchequerjeremy hunt says bailing out struggling borrowers only risks stoking inflation further. no matter what the pressure from left, right or centre, we won t be pushed off course. because if we re going to help families, if we re going to relieve the pressure on people with mortgages, on businesses, we need to squeeze every last drop of high inflation out of the economy. and if you look at what s happening in other countries, we know there is enormous pressure for families with mortgages. and it s a really big deal forfamily finances. but the one thing that would not help those families is to step in with short term support that meant that inflation stayed higher for longer, and those mortgage rates stayed higher for longer. let s speak to melanie baker, senior economist at royal london asset management. how far do you think the bank of england will go, a quarter
the government s finance chief chancellor of the exchequerjeremy hunt says bailing out struggling borrowers only risks stoking inflation further no matter what the pressure from left, right or centre, we won t be pushed off course. because if we re going to help families, if we re going to relieve the pressure on people with mortgages, on businesses, we need to squeeze every last drop of high inflation out of the economy. and if you look at what s happening in other countries, we know that there is enormous pressure for families with mortgages and it s a really big dealfor family finances but the one thing that would not help those families is to step in with short term support that meant that inflation stayed higherfor longer support that meant that inflation stayed higher for longer and as mortgage rates stayed higherfor longer. paul dales, chief uk economist at the economic consultancy capital economics.
servicing the debt is going to be much bigger. all of the money flowing into the economy risks stoking inflation. 9.9% currently with the bank of england tart with cutting it back to 2%, so interest rate rises are happening and will continue to happen. so, in terms of that i am at now, what does that mean for the viability of this? there s a good time to do radical change and people will always criticise and have issues with anything you try to do. what the covenant is doing is saying we are in this time and if we want to get out of it and boost the economy, we need to go for growth. it want to deal with inflation or regulations that are stopping businesses from being able to produce and if businesses can produce more, they can lower prices and that reduces inflation over time, so one strategy is the fantastic way to get out of inflation. where there are genuine concerns is in terms of the fiscal stimulus that comes out of this. and
let s speak to our chief political correspondent, adam fleming. the chancellor said again last night he is standing by, ready to help people. we keep hearing this from the prime minister and from him, but when? , ., ., , when? good question. i have ust listened to when? good question. i have ust listened to the i when? good question. i havejust listened to the director-general l when? good question. i have just| listened to the director-general of listened to the director general of the cbi on the radio saying there should be help for the most vulnerable right now, and that could be done without stoking inflation. that calls into question one of the government s arguments for not acting straightaway. rishi sunak last night was talking to an audience of business leaders, so it was a business focused speech. the centrepiece of it was talking about, or hinting that they would be tax cuts for businesses to encourage them to invest in people and staff and innovation later in the year.