PM and prime minister on holiday as Bank of England warns UK will be hit by recession | Political news
Both Boris Johnson and prime minister Nadhim Zahawi were on holiday as the Bank of England raised interest rates in 27 years and warned of the longest recession since the financial crisis.
The government is facing urgent calls for action to tackle soaring energy prices after Bank of England Governor Andrew Bailey raises interest rates to 1.75% from 1.25%the only increase since 1995, in an attempt to control runaway inflation.
The Bank’s Monetary Policy Committee (MPC) forecast inflation to peak at 13.3% in October, the highest level in more than 42 years.
It warned dire economic conditions would cause real household incomes to fall for two consecutive years, the first time this has happened since records began in the 1960s.
But when the dire economic outlook was revealed, both the prime minister and Mr. Zahawi went from Westminster on holiday.
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The Prime Minister is said to be working remotely while absent for several days.
“There is no such thing as holiday and no work,” said the prime minister.
“I’ve never had that in the private sector, nor in the government. Ask any entrepreneur and they can tell you it.
“Millions of us dream of being home with our families, but the privilege and responsibility of public service means you should never be turned off, which is why I’ve had calls and briefing every day and continue to do so.”
The Prime Minister’s official spokesman confirmed last week that Mr Johnson would be on holiday from Wednesday despite having just over a month left in office.
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Bringing inflation back to 2% remains a ‘priority’
The Prime minister He told reporters.
Downing Street would not give details on where the prime minister will spend his annual leave until the weekend, and insists he will still run the country.
Asked who would be in charge while Mr Johnson was away, the Prime Minister’s official spokesman said: “That would be the standard pattern.
“The prime minister will be updated upon request. The deputy prime minister and as always with the cabinet government, other ministers, will be on hand to assist as needed.”
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‘Blood, bleak forecast’ for UK economy
However, Mr Zahawi did respond to the Bank of England’s announcement.
“Along with many other countries, the UK is facing global economic challenges and I know that these forecasts will concern many,” the prime minister said.
“Tackling the cost of living is a priority and we’ve been working to support people through these difficult times with a £37 billion package of help for households, which includes direct payments of £1,200 to the most vulnerable families and a £400 discount on energy bills for everyone.
“We are also taking important steps to keep inflation under control through strong, independent monetary policy, responsible tax and spending decisions, and reforms to boost productivity and our growth.
“The economy has recovered strongly from the pandemic, with the fastest growth in the G7 last year, and I am confident that the action we are taking means we can also overcome global challenges,” he said. this bridge.”
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The Treasury then released a news release on the call Mr Zahawi made with the governor of the Bank of England on Thursday afternoon, saying the two discussed the actions they were taking to combat the virus. high inflation and overcome the economic challenges facing the country.
Energy Secretary Greg Hands claimed the government was working “fairly” on ministers’ “number one priority” despite both Mr Johnson and Mr Zahawi being away from Westminster.
Pressed on how the Prime Minister and Prime Minister can work stably while abroad, Mr Hands replied: “Because we have already made decisions about the support package to be put in place at the moment.
“Some measures are still being worked out – like support for the £400 bill which will start in October, as payments to people on disability benefits will start in September.
“So all of this is offering a range of support measures for consumers and bill payers.
“But that situation will be under constant review and I’m sure even as the next prime minister this will be their number one priority as it is for current and outgoing prime ministers.”
But the Liberal Democrats accused the Prime Minister and Mr Zahawi of being “a fugitive”.
“The least the British people can ask for is a prime minister and prime minister who will explain how they got us into this mess and what the plan is to tackle it. We need a general election. elected to finally get rid of this lousy Conservative government,” said Lib Dem foreign affairs spokeswoman Layla Moran.
Labor leader Sir Keir Starmer currently on vacation.
But Rachel Reeves, shadow prime minister, said the forecast was “more evidence that the Conservative Party has lost control of the economy”.
