Rishi’s fightback against big government Toryism

Next month, Rishi Sunak will break a Tory manifesto pledge by increasing National Insurance as the tax burden heads to a 77-year high. By declining to increase departmental spending for inflation – and using the saved money to cut the basic rate of income tax – the Chancellor has started a cautious fightback against Big Government conservatism.

Much has changed in the two years since Sunak took over as Chancellor. Back then, inflation appeared dead and buried: long-term forecasts did not envisage it going above 2 per cent. Sajid Javid, Sunak’s predecessor, said he expected rates to be ‘low for long’ – and planned to borrow and spend on that basis. The Tories had quite simply lost their fear of inflation. Now inflation is back and has pushed government debt interest payments up by £2.6 billion in the past month alone.

Changing times call for a change in outlook. Sunak has gone ahead with the National Insurance increase, so the government will now take an extra 2.5