Rishi Sunak has pledged to rebuild the public finances in a way that is “fair and compassionate” as he brushed off opposition demands for an immediate general election.

In his first Prime Minster’s Questions, Mr Sunak said he would always protect the most vulnerable as the Government addressed the “mistakes” of his predecessor Liz Truss.

Earlier, Chancellor Jeremy Hunt announced that his Halloween budget setting out the measures to get the UK’s deficit under control was being delayed to November 17 to take account of the very latest economic forecasts.

Mr Sunak said: “I will always protect the most vulnerable. We did it in Covid and we will do it again,” he said.

“This Government is going to restore economic confidence and stability and we will do it in a fair and compassionate way.”

Read more: Rishi Sunak - What Northallerton residents think as MP gets Prime Minister role

Here's all the key moments from Rishi Sunak's first PMQs as Prime Minister

Levelling Up

The Northern Echo: Billingham is one of many North East towns in need of investment Billingham is one of many North East towns in need of investment

Prime Minister Rishi Sunak gave a “cast iron” commitment to continue with levelling-up policies.

Conservative MP Philip Davies (Shipley) said Mr Sunak is “absolutely the right person for the job” before asking him to commit to levelling up.

Mr Sunak told Prime Minister’s Questions: “I can give him my cast-iron commitment to levelling up, particularly in Yorkshire.”

Support for the vulnerable

The Northern Echo: Labour leader Keir Starmer alongside the Labour frontbench at PMQs on WednesdayLabour leader Keir Starmer alongside the Labour frontbench at PMQs on Wednesday (Image: PA)

Labour leader Sir Keir Starmer called on the Government to “get rid” of non-dom status.

He said: “The Government currently allows very rich people to live here but register abroad for tax purposes, I don’t need to explain to the Prime Minister how non-dom status works, he already knows all about that. It costs the Treasury £3.2 billion every year. Why doesn’t he put his … money where his mouth is and get rid of it?”

Rishi Sunak replied: “I have been honest, we will have to take difficult decisions to restore economic stability and confidence, and my honourable friend the Chancellor (Jeremy Hunt) will set that out in an autumn statement in just a few weeks.

“But what I can say, as we did during Covid, we will always protect the most vulnerable, we will do this in a fair way, but what I can say, I am glad that the party opposite, the honourable gentleman has finally realised that spending does need to be paid for, it is a novel concept for the party opposite. This Government is going to restore economic stability and we will do it in a fair and compassionate way.”

‘Pretends he’s on the side of working people’

The Northern Echo: Rishi Sunak (centre) with Tees Valley Mayor, Ben Houchen and supporters during a visit to Teesside Freeport, Teesworks, in RedcarRishi Sunak (centre) with Tees Valley Mayor, Ben Houchen and supporters during a visit to Teesside Freeport, Teesworks, in Redcar (Image: PA)

Starmer has accused Rishi Sunak of pretending to be on the side of working people, telling the Commons: “I am surprised he’s still defending non-dom status. He pretends he’s on the side of working people, but in private he says something very different.

“Over the summer he was secretly recorded at a garden party in Tunbridge Wells boasting to a group of Tory members that he personally moved money away from deprived areas to wealthy places instead. Rather than apologise or pretend that he meant something else, why doesn’t he now do the right thing and undo the changes he made to those funding formulas?”

To cheers, Mr Sunak replied: “I know (Sir Keir) rarely leaves north London, but if he does he will know that there are deprived areas in our rural communities, in our coastal communities and across the south, and this Government will relentlessly support them because we are a Government that will deliver across the United Kingdom.

“He mentioned the last few weeks – I’m the first to admit mistakes were made and that’s the reason I’m standing here. But that is the difference between him and me.”

Mr Sunak received criticism this summer after a video emerged of him telling Tory members in Tunbridge Wells he was diverting funding from “deprived urban areas” to ensure “areas like this are getting the funding they deserve”.

 

“This summer I was being honest about the difficulties that we were facing, but when he ran for leader he promised his party he would borrow billions and billions of pounds.

“I told the truth for the good of the country, he told his party what it wanted to hear. Leadership is not selling fairy tales, it is confronting challenges, and that is the leadership the British people will get from this Government.”

“My record is clear, when times are difficult in this country I will always protect the most vulnerable, that is the values of our compassionate party. We did it in Covid and we will do that again.”

Plan to reduce inflation

Rishi Sunak has claimed the priority of the Government will be to “reduce inflation”.

Labour MP for Lewisham East Janet Daby told the Commons: “This week, my constituents are writing to me demanding a general election and I absolutely agree with them. So can the Prime Minister tell me and my constituents when there will be a general election?”

The Prime Minister said: "As I said in the summer, I said inflation is indeed the enemy.

“It makes everyone poor. It erodes savings and that’s why it will be a priority of our Government to grip and reduce inflation, and provide support to those who need it as we do.”

Controversy over Home Secretary’s reappointment

The Northern Echo: Home Secretary Suella Braverman, leaves Downing Street, Westminster, London, after the first Cabinet meeting with Rishi Sunak as Prime Minister.Home Secretary Suella Braverman, leaves Downing Street, Westminster, London, after the first Cabinet meeting with Rishi Sunak as Prime Minister. (Image: PA)

Sir Keir Starmer asked the new prime minister: “Was his Home Secretary right to resign last week for a breach of security?”

Mr Sunak replied: “The Home Secretary made an error of judgment but she recognised that, she raised the matter and she accepted her mistake.

“That is why I was delighted to welcome her back into a united cabinet that brings experience and stability to the heart of Government.”

“He talked about fighting crime, I would hope that he would welcome the news today that there are over 15,000 new police officers on our streets and the Home Secretary will be supporting them to tackle burglaries, while the party opposite will be backing the lunatic protesting fringe that are stopping working people going about their lives.”

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