FOREST of Dean MP Mark Harper said Chancellor Rishi Sunak needs to “keep something in the tank” to help people deal with the rising cost of living in case “we get another shock in the autumn” ahead of his Spring Statement this week.

The Chancellor revealed his annual statement - described as a ‘mini-budget’ -  in the House of Commons on Wednesday (March 23), amid increasing pressure to take action with energy, food and fuel costs all on the rise.

Mr Sunak told MPs that the Office for Budget Responsibility was forecasting growth of 3.8 per cent for the UK economy this year - far less than the previously predicted 6 per cent - and growth of 1.8 per cent in 2023 and 2.1 per cent in 2024.

He said that the annual inflation rate was 6.2 per cent in February and is likely to average 7.4 per cent for the rest of the year, with a 8.7 per cent peak in the final quarter.

Ahead of the statement last Wednesday lunchtime, Mr Harper spoke to LBC’s Nick Ferrari about some of the expected measures.

He said: “The chancellor needs to make sure - because we’ve got a very uncertain outlook because of what’s going on with Russia and Ukraine - that he keeps some level of resilience in the system, so that if we get another shock in the autumn, for example to energy prices, he wants to have something left in the tank so the Government can do what it can to help people.

“If you spend all the money now, then we leave ourselves with no ability to cope with shocks in the future and that wouldn’t be responsible, so he’s go to balance all of those things.

“I’m confident he’ll set out a balanced package when he sets out his statement this lunch time”.

In his statement, the Chancellor announced he was increasing the threshold for national insurance by £3,000 - up from the planned rise of £300 - which he said would mean a tax cut of more than £330 a year for employees, but that the 1.25 per cent rise in national insurance must remain as a “dedicated funding source” for health and social care.

He also said fuel duty will be cut - for only the second time in 20 years - by 5p a litre until March next year.

Local authorities will also receive £500 million to support households with the rising cost of living, doubling the Government’s Household Support Fund to £1 billion.