PM accused of being 'out of touch' over cost of living

Rishi Sunak has been accused of being out of touch with ordinary families after claiming the economy was looking up and people's household incomes were "hugely outperforming" expectations despite the cost of living crisis.

- Rowena Mason, Pippa Crerar

On the plane to Japan for the G7 summit of world leaders, the prime minister said that even though consumers were struggling with high inflation and the cost of food and energy, there were "lots of signs that things are moving in the right direction" with the economy.

Sunak also risked an internal row with his home secretary, Suella Braverman, by defending record numbers of people coming to the UK legally and refusing to commit to the 2019 manifesto pledge to reduce net immigration. The chancellor, Jeremy Hunt, also waded into the Conservative dispute, saying that the government would maintain a "pragmatic" approach to immigration despite official data published next week expected to show the numbers have increased by more than 700,000.

Sunak also insisted that Brexit was working by citing cheaper beer and sanitary products. It came as three big global carmakers called on the UK government to renegotiate the deal, saying rules on sourcing parts threatened the future of the British automotive industry.

However, it was the prime minister's upbeat assessment of the economy, when so many households expected to feel the pinch and for some time, which prompted criticism. Labour's Treasury spokesman, James Murray, said: "Almost every word that comes out of the prime minister's mouth shows how utterly out of touch he is and disconnected from the reality of life for working people in our country."

Sunak told reporters on the way to the summit: "Economic optimism is increasing, consumer confidence is increasing, growth estimates are being raised."