Rishi Sunak, Chancellor of the Exchequer, has been tasked with delivering a raft of economic policies since he took over the helm in February of this year. The pressures of the pandemic have meant millions of people have required additional support to help them through tough financial times. However, as a result of schemes implemented to help the British public, government borrowing has soared.
And it appears the consequences are likely to be felt later down the line, as Mr Sunak attempts to balance the books.
Speaking at the Conservative Party conference, Mr Sunak warned there were “hard choices” ahead as the country grapples with the fallout from COVID-19.
He also stated the government would have to consider options going forward.
Mr Sunak remarked: “If we argue there is no limit on what we can spend, that we can simply borrow our way out of any hole, what is the point in us?”
This is likely to prove good news for pensioners who are hoping their sum increases annually.
Tax rises could be a solution to the high levels of borrowing this year, as the government seeks to claw back money.
It is, as of yet, unclear what tax rises will occur if any, but National Insurance and VAT increases have previously been speculated.
Mr Sunak has declined to comment on future tax policy, but has said the government will be focusing on jobs.
Speaking to BBC Breakfast today, Mr Sunak outlined the financial situation the country is currently facing.
He said: “This year, we’re obviously having to borrow an enormous amount of money to provide support to the economy at a time of crisis, that is the right thing to do.
“In terms of the medium term… obviously this cannot carry on forever.
“This level of borrowing, which will be record levels pretty much this year, is not sustainable in the long run.”
However, after Mr Sunak was asked about whether he planned to break Conservative Party manifesto pledges, he responded pointedly.
He added: “I wouldn’t read that into it.
“Those promises are very important to us and we fully intend to deliver on commitments.”