A furious row erupted over the levels of Government spending. Senior ministers warned Mr Sunak’s plan does not do enough to tackle inflation, suggesting Britain risks sleepwalking into an economic disaster if action is not taken.
Official forecasts say Britons face the biggest hit to living standards since records began in the late 1950s.
At the same time, inflation is set to hit a 40-year high of nearly nine percent later this year.
When the Cabinet met to sign off on Mr Sunak’s Spring Statement in No10 on Wednesday morning, he was met with a barrage of demands to rethink his plans.
It is thought ministers wanted the Chancellor to re-assess three year spending commitments announced last year.
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No10 said the pair were “as one when it comes to the fiscal plans”.
Amid criticism the Government is spending too much and at the same time not doing enough to help struggling Britons, the Chancellor admitted last night he had “always tried to be honest with people”, but added: “I can’t protect them from absolutely everything that we face.”
He said he had unveiled “substantial” help but was also bringing down Government debt levels.
Mr Sunak told Sky News last night: “Families are struggling with the rising cost of lots of things and that’s why in the Spring Statement I wanted to make sure that we demonstrated we were on people’s side, and we announced the tax plan that will deliver the biggest net cut taxes, net cut to personal taxes in two years, in quarter of a century taken together.
“I think what we’ve done is substantial.
“If you take together £9billion to help people with energy bills announced last month, the significant tax cuts that we announced yesterday, they will all help.
“But of course they can’t mitigate all the difficulties that high inflation is causing.
“No Chancellor could do that.”