Foreign secretary struggles to explain what government is doing to reduce inflation – UK politics live | Politics

Rachel Reeves, the shadow chancellor, has ruled out Labour backing plans for subsidies or financial support for mortgage holders, as struggling homeowners brace for another interest rate rise, PA Media reports. PA says:

The Bank of England is widely expected to raise interest rates for the 13th time in a row but the shadow chancellor rejected calls from some quarters for direct financial help for homeowners hit by rising rates.

Banks would instead be forced to help mortgage holders struggling with payments under Labour plans, with the opposition urging the government to compel lenders to allow borrowers to temporarily switch to interest-only payments or lengthen their mortgage period.

Banks would also have to wait at least six months before starting repossession proceedings as part of the party’s five-point plan amid growing pressure on the government to respond to the crisis.

The Liberal Democrats have called for an emergency mortgage protection fund paid for by a reversal of tax cuts for big banks but Reeves warned that such measures could worsen the fiscal situation.

“I recognise the challenge of inflation, and a big fiscal injection of cash into the economy, especially an untargeted injection, would not be the right approach,” Reeves told BBC Radio 4’s Today programme.

Kiran Stacey has more on Labour’s plans to help people deal with higher mortgage payments here.

Good morning. At noon the Bank of England is expected to raise interest rates for the 13th time in a row. Economists are forecasting a rise of at least a quarter of one percent, from 4.5% to 4.75%, but some of them believe there is a chance of a half-point increase, taking the rate to 5%, its highest level since April 2008.

Graeme Wearden is covering the buildup to this decision in detail on his business live blog.

Rishi Sunak and Keir Starmer are both speaking in public today, and they will be under pressure to explain what they would to tackle inflation. It remains stubbornly high, and that explains why the Bank keeps pressing the interest rate pedal. They will be hoping they do a better job than James Cleverly, the foreign secretary, who struggled in an interview this morning to explain what the PM was doing to halve inflation (one of his five pledges).

Asked by Amol Rajan on the Today programme what the plan was, Cleverly started by talking about Ukraine, which is part of his brief, and said that resolving the conflict would bring down energy prices. He also mentioned making the economy more productive, and creating more apprenticeships. Unimpressed by the waffle, Rajan took him back to the question. This was how the exchange went. It was excruciating listening.,

AR: The things you mentioned are not part of core inflation. If you look at core inflation, it’s very clear … that the UK has got a bigger problem with inflation than other countries. And if you strip out those things that you mentioned, which are volatile, like food and energy prices, core inflation in this country is different to other countries. It’s going up. I just want to know what the prime minister’s plan is to do about it. Because influencing apprenticeships isn’t really going to affect inflation in the short term.

JC: Look, we recognise that you have to deal with things in the short, medium and long term.

AR: So what is the plan in the short term to reduce inflation from the prime minister?

JC: As I say, the point is, with things like driving down the implications of food and fuel …

AR: I’m asking you about core inflation … The prime minister has said cutting inflation is a top priority. What is the prime minister’s short term plan for reducing inflation?

JC: One of the main vehicles for short term addressing inflation is interest rates …

AR: The prime minister does not control that. So what’s he going to do?

JC: The point is, not all the levers of control are in the government’s hands … We set inflation targets for the Bank of England, the Bank of England sets interest rates in response to those inflation targets. We do what we can do to try and address the issues over which we have direct control …

AR: Millions of our listeners are really concerned about inflation. We’ve established that inflation in this country is going up, core inflation, and the prime minister has made it a priority to reduce inflation … So in terms of what this country’s prime minister is doing immediately to reduce inflation, what is it?

JC: What we are doing is making sure that in the areas where we do have control – for example, one of the reasons why we have been thoughtful but cautious on public sector pay awards is we know that is one of those things that adds inflationary pressures. We’re very conscious that increased government borrowing is one of those things that loops around and increases inflationary pressures. That’s why we were standing firm on these things and that is in stark comparison with the Labour party, for example, who are talking about a massive borrowing spree and talking about well above inflation pay rises, all of which would have increased inflationary pressures.

Here is the agenda for the day.

10am: Sir Chris Whitty, the chief medical officer for England, gives evidence to the Covid inquiry. In the afternoon Sir Patrick Vallance, the former chief scientific adviser, gives evidence.

11.25am: Keir Starmer speaks at the Times’ CEO summit. At 12pm he will be interviewed on Times Radio.

11.30am: Downing Street holds a lobby briefing.

Noon: The Bank of England announces its latest interest rate decision.

12.35am: Rishi Sunak speaks at the Times’ CEO summit.

2.15pm: Sunak holds a PM Connect Q&A in Kent.

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