25 June 2023 , 10:44
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Mega-rich Rishi Sunak has sparked a backlash after saying the UK needs to "hold our nerve" on interest rate rises - as millions face the misery of mortgage hikes.
The PM claimed there is "no alternative" in the battle against inflation after the Bank of England ramped up inflation for the 13th time in a row last week.
He was branded "out-of-touch" and "not up to the job" amid growing pressure for tougher action.
The Government faces calls to intervene as the impact of Liz Truss's disastrous premiership continues to haunt homeowners and those trying to get on the housing ladder.
Inflation remains at 8.7% despite Mr Sunak's pledge to drive it down.
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Labour's Shadow Chancellor Rachel Reeves branded Mr Sunak 'out-of-touch' (Philip Coburn /Daily Mirror)The PM - who has an estimated wealth of £529million alongside wife Akshata Murty - told the BBC's Sunday With Laura Kuenssberg programme: "The Bank of England is doing the right thing.
"The Bank of England has my total support. Inflation is the enemy for all the reasons that we have talked about. Inflation is what makes people poorer."
Quizzed on whether another approach would work, Mr Sunak said: "There is no alternative to stamping out inflation.
"I get that this is challenging, but we've got to stick to the course.
"I want people to be reassured that we've got to hold our nerve, stick to the plan and we will get through this."
Labour's Shadow Chancellor Rachel Reeves posted on Twitter: "Totally out of touch. Labour will not stand by as working people face this Tory mortgage catastrophe."
Lib Dem leader Sir Ed Davey said voters would be 'furious' (PA)Following the interview Lib Dem leader Ed Davey said: "Struggling homeowners will be rightly furious after watching an out-of-touch Prime Minister who has no idea of the pain caused by rising mortgage rates.
"Rishi Sunak's patronising advice to struggling families coping with the cost-of-living crisis shows why he is not up to the job.
"People need help, not a Prime Minister instructing them to hold their nerve."
The unexpected jump in interest rates - from 4.5% to 5% - left mortgage holders facing a rise of hundreds of pounds a month.
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Treasury minister John Glen noted there "isn't a single quick lever" the Government can pull to tackle inflation.
He told Sky's Sophy Ridge On Sunday: "There isn't one single thing I can do sat in Whitehall that's going to resolve this in one month."
Chancellor Jeremy Hunt last week agreed measures with banks aimed at cooling the mortgage crisis, including allowing borrowers to extend the term of their mortgages or move to an interest-only plan temporarily.