Chancellor's cost-of-living pledge - I'LL HALVE INFLATION THIS YEAR

RISHI SUNAK is on course to fulfil his key promise to the nation and halve inflation by Christmas, the Treasury predicted last night. 

- Jonathan Walker

The Prime Minister made it clear that tackling soaring prices was his number one priority when he entered Downing Street barely 10 months ago.

In an upbeat message yesterday, his Chancellor Jeremy Hunt said they had proved the doubters wrong – and now planned to cut inflation even further.

He declared: “Our plan is working.

“The Government is unlocking the UK’s potential.”

But while the clamour in his party grows for immediate tax cuts, Mr Hunt warned this would not be possible until inflation is at 2 per cent. This means they are unlikely to take place this year. Urging patience, he said: “As we move into autumn, I know family budgets are still  stretched, but inflation is coming down and now is the time to see the job through.

“We are on track to halve inflation this year and by sticking to our plan we will ease the pressure on families and businesses alike.”

Mr Hunt will throw everything into the battle to bring prices under greater control when he begins work tomorrow on an autumn financial statement designed to turbocharge the economy. New data last week showed that it is growing faster than expected. 

Mr Hunt said: “It should be no surprise, despite the doubting from some.

“Latest figures show we have bounced back better than many other G7 economies and are one of the most attractive countries in the world in which to invest.

“This Government is unlocking the UK’s potential – attracting more investment, creating new jobs and growing the economy.”