Rishi Sunak FAILS to bolster Britain’s defence budget despite Russia’s invasion of Ukraine

RISHI Sunak refused to bolster Britain’s defence budget yesterday despite Russia’s invasion of Ukraine.

The Chancellor failed to pledge a single penny towards the nation’s military coffers.

He told MPs a £24billion investment he announced last year amounted to “the largest uplift to defence spending since the end of the Cold War”.

He said £400million was being sent to Ukraine “in economic and humanitarian aid”.

But Dr Alan Mendoza, executive director of the Henry Jackson Society think tank, said: “This ought to have been the moment to increase defence spending and reverse dangerous cuts to our armed forces.

“The Chancellor’s failure to raise defence spending will regrettably be welcomed in the Kremlin.”

Just one year relief at pumps

FUEL duty was cut by 5p yesterday — but the reduction in tax at the pumps will only last a year.

Following his announcement, Chancellor Rishi Sunak told greedy fuel companies they must pass on the cut to Britain’s hard-hit motorists.

After years of campaigning by The Sun’s Keep It Down crusade, he yesterday made “the biggest cut to all fuel duty rates ever”.

It was only the second time the levy has been slashed in 20 years — after an 11-year freeze. It represented a £5billion tax cut. He told fuel firms: “The public will rightly expect to see this historic cut reflected in the prices shown on the forecourt.”

Asda, Sainsbury’s and BP all pledged to pass on the cut.

Howard Cox, of FairFuelUK, said: “It may not sound a lot, but for some businesses this unprecedented cut in one of the world’s highest tax levies means survival.

“Thanks to The Sun, campaigning by FairFuelUK and lobbying of Tory colleagues by Harlow MP Robert Halfon, drivers have respite at the pumps.”

Debt repayment record

BRITAIN will pay £83billion on debt interest next year — almost half the entire NHS budget.

Official economists said the cash spent on maintaining our debt by next April would be double what was forecast just six months ago thanks to soaring inflation. Our interest payments will hit an eye-watering 3.3 per cent of GDP — a 36-year-high.

An extra £13billion has been added since October, and another £9billion will be slapped on every year.

Britain’s debt is set to hit 95.6 per cent of GDP in 2021/22 — the highest level since the 1960s.

Next year, higher interest payments will offset higher tax receipts, meaning the Chancellor must borrow even more. The huge debt leaves Treasury coffers more sensitive to changes in inflation and interest rates.

Benefits squeeze

PAY and benefits for millions of Brits will be squeezed thanks to inflation hitting a 40-year-high.

People face the biggest fall in living standards since records began as inflation is expected to rise to 8.7 per cent by the end of the year, economists said.

Real earnings are expected to tumble and benefits will rise by just 3.1 per cent.

There was no extra pay increase for public sector workers such as teachers, nurses and soldiers, meaning they are set to see their wages effectively slashed as the price of food, fuel and energy soars.

Paul Johnson, of the Institute for Fiscal Studies, tweeted: “No extra money for health, schools or other public services despite huge increase in inflation. Likely implies big real pay cuts for most public sector workers.” And there was no increase in Universal Credit to reflect the gloomy new figures.