Rishi Sunak’s “soaring” personal wealth has come under fresh attack ahead of crucial inflation figures coming out tomorrow.
In what will be a key moment in the election campaign, the rate of inflation is expected to ease back to the Bank of England’s target of 2% for the first time since spring 2021.
The figures could provide a much needed boost for the embattled prime minister, whose key offering to voters is that the economy has “turned a corner” under his leadership and they should not risk change with Labour.
But the Labour Party says this claim is “rubbished” by data showing more than half of Brits think the cost of living crisis has become worse in the last month.
The party says that Mr Sunak’s wealth increased by ÂŁ122m in the last year, while data from the Office for National Statistics (ONS) shows millions of people continue to struggle.
Darren Jones, shadow chief secretary to the treasury, told Sky News:“No wonder Rishi Sunak doesn’t have a clue what working people are going through. He is entirely insulated from the cost of living crisis and totally out of touch.
“Under the Tories, taxes on working people have risen to a 70-year high and this week Jeremy Hunt has confirmed that their manifesto is unfunded.
“We need a change, we need a government that understands working people, we need a Labour government.”
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Image: Darren Jones, shadow chief secretary to the treasury
ONS data released earlier this month showed 54% of people believed the cost of living has increased compared to one month ago – while just 3% of people believed it had decreased.
The biggest way people are feeling the pinch is at the supermarket – with 91% of respondents saying the price of their food shop has shot up.
The data also showed 45% of people’s rent or mortgage has increased in the last six months, while a third of people say they are unable to save anything in the year ahead.
This is despite the fact inflation is nearing normal levels, after reaching record highs in recent times and at one stage hitting a peak not seen for 40 years.
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With households still feeling the squeeze, all parties are facing pressure to do more to tackle the cost of living.
The Tories are promising tax cuts, with the prime minister on Tuesday night saying prioritising this was his “moral mission” now that inflation is back “under control”.
Meanwhile, Labour is vowing to cut energy bills through the creation of a publicly owned clean energy company, saying this could save families ÂŁ300 a year.
Labour has sought to use Mr Sunak’s vast personal fortune as a dividing line during the election – saying he can’t relate to the pressures facing the rest of the country.
The personal wealth of Mr Sunak and his wife Akshata Murty rose by ÂŁ122m last year, according to the Sunday Times Rich List.
The couple’s fortune was estimated at ÂŁ651m in the latest list, published in May, up from ÂŁ529m in 2023.
This means they are richer than the King, according to the annual list of the UK’s most wealthy people.
The bulk of the couples’ wealth derives from shares in Infosys, the IT company co-founded by Ms Murty’s father.
A Conservative spokesperson hit back at Labour’s attack by claiming the party was facing a ÂŁ38bn black hole in their finances – a figure that Labour has disputed.
“Keir Starmer is desperately trying to hide the fact that the ÂŁ38.5bn blackhole in Labour’s manifesto will cost households up and down the country ÂŁ2094,” the spokesperson said.
He has also ramped up personal attacks against his rival Sir Keir Starmer in recent days – claiming yesterday that he lacks the “courage of his convictions”and so would find the job of prime minister “hard to do well”.
Earlier this week, the prime minister confirmed his party was looking to make changes to its controversial slashing of winter fuel payments to pensioners at an upcoming “fiscal event”.
Little clarity was provided on when this would be – the budget in the autumn thought the most likely.
Image: Angela Rayner says she wants the changes announced soon. Pic: PA
Ms Rayner has now suggested the 11 June spending review in just over a fortnight is her preferred date.
She told Sky News: “I think that we’ve got the upcoming spending review, and I’m sure that the chancellor will set it out when we’ve got the opportunity – at the first opportunity Trevor she will set out what we’ll be able to do.”
Asked if changes might be announced at the review, Ms Rayner said: “I hope so, but I don’t know. But I hope so.
“I mean, the prime minister’s announced it, so logically to me that indicates that the prime minister wants to do something in this area.
“And if the prime minister wants to do that, I’m sure the chancellor is going to look at how we can achieve that.”
Some might suggest Ms Rayner’s stance was a bid to push Downing Street into an announcement faster than it previously wanted.
It would add to rumours the deputy prime minister is unhappy with the way Sir Keir and Rachel Reeves are running the government.
However, when asked by Trevor Phillips if she wanted to lead her party, Ms Rayner was unequivocal.
“No. I’m very happy and honoured to be deputy prime minister of this country,” she said.
“And I’ve got a lot in my in-tray to prove that I can do the job that I’m doing and deliver on the milestones for the people in this country.”
She continued: “I have no desire to go for the leadership of the Labour Party.”
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Asked to say the word “never”, Ms Rayner repeated “never”.
Ms Rayner also confirmed a leak inquiry was under way after her proposals on tax and spend sent to the chancellor ended up published in The Daily Telegraph.
This weekend, it has become clear there is a price to pay for Sir Keir Starmer’s decision to row back on winter fuel payment cuts.
One MP said in a text message: “We all want to see more”, while former prime minister Gordon Brown told Sky News this week the two-child benefit cap was “pretty discriminatory” and could be scrapped.
Image: Nigel Farage is expected to call for the two-child benefit cap to be scrapped
The cap, which prevents parents from claiming child tax credit or universal credit for more than two children, is a symbolic sore for Labour that saw seven MPs suspended from the party last year.
Now it’s back to cause more trouble.
A Downing Street source suggests little has changed in the last week, and looking at the cap has always been part of the (now delayed) Child Poverty Strategy.
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1:22
‘You’ve got to be fair to pensioners’
But, beyond the whispers behind the scenes, one thing has overtly changed this weekend – growing pressure from Nigel Farage.
Mr Farage is parking his tanks on Labour’s lawn, trying to tap into working-class votes on uncomfortable territory for Mr Starmer.
How would they pay for it? A combination of closing asylum hotels, cutting aid, and scrapping net-zero targets, the party says.
Image: Conservative leader Kemi Badenoch
Headline-grabbing move
The beauty of not being in power is not having to make all the sums add up right now, and it is a headline-grabbing announcement that will, at the very least, reignite the conversation about the two-child cap.
It’s also a reminder that Reform UK, who were beaten by Labour in 89 out of the 98 constituencies they came second in last year, have set their sights beyond the Conservatives.
As for the Tories, who introduced the measure in 2017, leader Kemi Badenoch is clear, saying: “If you can’t afford to have lots of children, then you shouldn’t do so”.
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1:26
Deputy Prime Minister Angela Rayner is hoping for an update on the winter fuel allowance
Blue water between Tories and Reform UK
So, there is blue water between the Conservatives and Reform, but it’s the prime minister and his party that Nigel Farage is targeting now, and Labour is unclear on where it stands.
With the spending review fast approaching, Sir Keir and Chancellor Rachel Reeves will be working out the actual cost, beyond the political one, of rowing back on winter fuel payment cuts.
But will the anger that the policy ignited among some Labour MPs end there? Or will it move to another uncomfortable subject?
As one MP puts it: “If there’s money for pensioners, why not children?”
Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.
The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.
In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.
The initiativeâs second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.
Pakistan unveils tax incentives to attract investors
Per the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.
To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.
Bilal Bin Saqib, CEO of Pakistanâs Crypto Council, reportedly welcomed the development, calling it a âturning pointâ for the countryâs digital economy.
Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.
The meeting included lawmakers, the Bank of Pakistanâs governor, the chairman of Pakistanâs Securities and Exchange Commission (SECP), and the federal information technology secretary.
The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.
Pakistan ranked highly in Chainalysisâ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.
Pakistan ranked highly in Chainalysisâ 2024 crypto adoption index, coming in 9th. Source:Â Chainalysis
Data from Statista also shows Pakistanâs crypto market is âexperiencing rapid growth,â estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.