Amid economic crisis, PM Rishi Sunak says UK govt 'cannot solve' all problems of citizens

UK PM Rishi Sunak has said that the British government "cannot solve" all the problems UK citizens are facing, as per a report from Sputnik news. Sunak, however, stated that he will be honest with UK citizens on the economic challenges that the country faces. The new UK PM's government is slated to introduce a budget on November 17th. 

Rishi Sunak said that he was "confident" that the British people will consider his autumn budget fair and compassionate. The British state, due to Liz Truss' economic plans, has witnessed a decline in revenue. Sunak faces the challenge of navigating the economy without cutting public spending too much. Heavy cuts in public spending, especially cuts in the NHS' budget, will lead to backlash at the voting booth. 

UK's economic crisis

Reports suggest that the UK government is going to announce a nearly £50 billion worth of tax rises to give the government some fiscal room. Sunak said that he cannot gain the trust of people unless he is honest about the challenges the UK faces. When Sunak was invited by King Charles to form the government, the former UK chancellor said that the country faces a profound economic crisis. People in the UK are concerned that their nation will go back to the days of austerity. Interest rates in the UK now stand at 3 percent, which will inevitably lead to a recession. 

According to a report from the Guardian, UK's central bank, the Bank of England has warned that the nation is staring at its longest recession since the 1930s. Inflation in the UK touched 10.1 percent in September, forcing the central bank to raise rates aggressively to tame down inflation. The central bank’s monetary policy committee has voted to hike rates aggressively, despite being aware that it would lead to a recession. “The economy has been subject to a succession of very large shocks. Monetary policy will ensure that, as the adjustment to these shocks continues, consumer prices index inflation will return to the 2% target sustainably in the medium term. There are considerable uncertainties around the outlook. The committee continues to judge that, if the outlook suggests more persistent inflationary pressures, it will respond forcefully, as necessary," the bank's report read.