29 May Chancellor Hunt wrong on inflation says Tory grandee David Davis
CHANCELLOR Jeremy Hunt’s policy on inflation has been criticised by former Brexit Secretary David Davis.
Asked by Camilla Tominey if Mr Hunt was right to say he would be prepared to see the economy shrink to get inflation under control, Mr Davis said: “No, no, the reverse, if inflation took off, it would undermine the basis of growth and it would cut people’s incomes. The cost of living would basically drive their effective income down.
“I’m old enough to remember the last time we had very high inflation and it’s incredibly corrosive. It destroys growth by itself. So he’s right. He’s got to fix that.
“I wouldn’t quite put it in those terms, where one’s worth the other. I would have just said you’ve got to fix one before you get the other. You’ve got to fix inflation before you get sustainable growth.”
In a discussion with Camilla Tominey, in reference to Boris Johnson’s resignation honours list, he said it would appear to depend on the outcome on the enquiry into Covid lockdown breaches.
He said: “We were still halfway through this trial. I know it’s not over yet. And then when we come to the conclusion, let’s see what the privileges committee decides.
“If they decide that he is guilty of a major misdemeanour and they penalise him accordingly, then maybe we have to think twice about honours.”
He added: “I happen to think by the way that we are all together too fast to allow resignation honours for a Prime Minister. Liz Truss was in place for weeks and she has an honours list.
“I think resignation lists are a bad idea full stop. They lead to a feeling, whether it’s true or not, they lead to a feeling that people are just paying off their friends.”v
