This isn’t the same Rishi Sunak who gave Santa a run for his money during the pandemic.
He’s going to have an incredibly tight hold on the purse strings.
Jeremy Hunt is likely to stay at Number 11 with his mantra of tough decisions and spending cuts.
It means we may not be able to rely on extra help when we’re facing horrific price rises next April.
It was partly Sunak’s commitment to keeping a lid on spending, and higher levels of taxation that persuaded Conservative Party members that there had to be an easier answer during the last leadership election.
The short and messy premiership of Liz Truss may well have cemented the opinion that right now there’s no alternative.
Anyone who relies on benefits to make ends meet will be crossing everything that Sunak’s previous commitment to uprate benefits with inflation in April will stand the test of time.
However, given that his Chancellor has thrown the uprating into doubt, there are no guarantees at this stage.
Those on the lowest incomes have been hit hardest by rocketing prices, so have been left with impossible challenges.
If benefits don’t keep pace with inflation in April, this will make life even more impossible. On the other side of the balance, Sunak will be dealing with a divided party, nervous about re-election. It’s going to make it more difficult for him to pass legislation which is going to leave so many voters so much worse off.
Sunak’s previous approach to energy support was the lump sums we’re receiving now. He opted for universal help, but at a far lower level than Truss subsequently introduced.
Hunt has pledged more targeted support for those on the lowest incomes from April. This could mean more lump sums, but on a means-tested basis.
If the system is developed to offer help to those who need it, this may be enough to help us through a really difficult period.
However, if the line is drawn so that average earners are out in the cold, it could be devastating.
At the same time, news emerged over the weekend that Jeremy Hunt is planning to extend the freeze on income tax thresholds into the next parliament.
By 2027/28 this is expected to cost taxpayers £5bn a year more, as millions of people are dragged into paying higher rate tax.
It’s an extension of an existing policy brought in by Rishi Sunak, so while it isn’t guaranteed to happen, the change of Prime Minister may not alter any plans already in place.”
