UK chancellor Rishi Sunak said his latest package of support for UK households will have a “minimal impact” on inflation after the government announced a windfall tax on energy companies to fund lower fuel bills.
“Our estimate and my view is that it will have a minimal impact on inflation,” Sunak told Sky News on Friday. “The reason for that is twofold. One [reason] is because what we’re doing is very targeted at those most in need, and secondly because we’re also raising money to help pay for it.
“Some people might say . . . you should just spend even more, borrow even more — I think that would be irresponsible, because that would risk driving up inflation, interest rates and people’s mortgages,” he said.
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