Rishi Sunak is pledging a £5.5bn crackdown on Whitehall waste as he faces pressure to tackle the cost of living crisis in his mini-budget.

Ahead of his spring statement on Wednesday, the chancellor claims the efficiency savings will both curb inflation and fund vital public services.

“During these challenging times it’s vital that every single penny of taxpayers’ hard-earned cash is being spent well,” Mr Sunak said.

“The current level of waste across government is simply not acceptable – which is why we’re doubling down on wasteful spending and launching an efficiency drive to make £5.5bn worth of savings.

“That money will then be pumped directly into the world-class public services that the British people deserve.”

Please use Chrome browser for a more accessible video player

Sunak under pressure to help struggling families

But the chancellor is under pressure from opposition parties and Tory backbenchers to help struggling families by cutting taxes, including slashing fuel duty by up to 5p.

Ukraine war: Increases in food prices ‘inevitable’ as conflict hits production costs

Cost of living crisis: Conservatives face moment of acute political danger as voters feel effect of economic pessimism

‘Cash machine’ BP more than doubles boss’s pay to £4.46m as energy prices surge

Other moves Mr Sunak may announce on Wednesday include raising National Insurance thresholds to offset the tax hike due next month and increasing benefits such as Universal Credit.

In his speech at the Conservatives’ spring conference in Blackpool, Boris Johnson said Vladimir Putin’s attack on Ukraine was “pushing up the cost of living, hitting us at the pumps and in our fuel bills”.

And he added: “And so we must respond, and we’ve got to do everything we can to help people with their daily costs, help people with the cost of living.”

Please use Chrome browser for a more accessible video player

Labour claims the chancellor has a cost of living treasure trove worth £21bn in additional tax revenue because prices have been soaring so high.

Shadow chancellor Rachel Reeves is demanding a one-off windfall tax on oil and gas profits, axing VAT on home energy bills for a year, ditching the “buy now, pay later” energy scheme and halting the NICS rise.

Announcing his waste crackdown, Mr Sunak says it will be spearheaded by a new “Efficiency and Value for Money Committee”, which he will chair, aimed at preventing fraud and spending errors.

Please use Chrome browser for a more accessible video player

NHS expected to find £4.75bn in savings

The NHS savings target will be doubled to 2.2%, freeing up £4.75bn, the chancellor claims, and “quangos” will be expected to find savings of at least £800m.

Ms Reeves claims total VAT receipts in 2021/22 could be up to £5.1bn higher than the Office of Budget Responsibility forecast at the time of the budget last October.

She also claims the Treasury will receive an additional £12.2bn from oil and gas profits in the coming year and a windfall tax would bring in a further £3.7bn, £2.5bn more than when Labour first proposed it in January.

Please use Chrome browser for a more accessible video player

“The chancellor is facing a historic moment,” said Ms Reeves.

“He can grasp the enormity of the cost of living crisis and choose to halt the NICs rise, and back a one-off windfall tax on booming oil and gas producer profits to cut home energy bills by up to £600, as Labour would do.

“There’s so much extra in the Treasury coffers because people are more out of pocket paying higher prices and facing worrying bills.

“With millions concerned about the cost of living and the future, this is the worst possible time to hike taxes on working people and businesses.”

Related posts:

Barclays shares fall despite profits surge and sunny outlook for UK economy AstraZeneca’s vaccine roll-out nets $275m in sales – but drags on its profits House prices soar 10.9% to seven-year high in ‘race for space’ Ireland’s flag carrier airline cancels several regional flights Brussels puts digital sales tax plan on ice after US pressure Warning issued over financial sector’s reliance on cloud computing Hands eyes housebuilding empire with £700m Keepmoat bid Carbon dioxide producer hikes prices under deal to keep supplies going amid gas costs spike Grocery prices increase 1.7% in four weeks, adding to pressure on households City policy chief McGuinness’s 2022 exit triggers succession race China’s Singles’ Day sees sales growth slow as ‘worship of turnover’ criticised Global markets rattled as Ukraine tensions rise