Rishi Sunak has admitted he can not minimize taxes but as tackling inflation “takes precedence over everything else”.

The Prime Minister stated he and Chancellor Jeremy Hunt are “completely united on wanting to reduce taxes”.

But he stated the Government should guarantee “we don’t do anything to make the situation worse or last longer”, with the Bank of England struggling to tame runaway costs and fears intensifying the ache felt by owners could worsen.

Asked if the battle with inflation will sprint hopes of tax cuts earlier than the subsequent election, the Prime Minister informed reporters: "The Chancellor and I are completely united on wanting to reduce taxes for people. Of course we are -- we're Conservatives. He's said that, I've said that, and we want people to be able to keep more of their own money.

“But the number one priority right now is to reduce inflation and be responsible with government borrowing. That is absolutely the overriding economic priority, and that takes precedence over everything else.

“So, given the context we face, we are going to make sure that we bring inflation down, and we don't do anything to make the situation worse or last longer. And that is our overall approach."

During his first Mansion House speech on Monday evening, Mr Hunt stated bringing down hovering costs “places more cash into folks's pockets than any tax minimize".

Rishi Sunak wants to halve inflation to about 5 percent by the end of the year, but the rate has remained at 8.7 percent, defying market expectations.

Interest rates are expected to peak at 6.5 percent next year as the Bank of England tries to curb inflation.

Conservative MPs want the Treasury to slash taxes before the next election to ease the cost of living crisis.

The Prime Minister said the Government can use fiscal policies - decisions on Government spending and taxes - to cut inflation.

He told reporters: “We have three tools to combat inflation as a country. First is monetary policy. Obviously that is independent.

“Second, I said it as Chancellor, fiscal policy is the next lever we have.

“It’s absolutely vital we bring inflation down. Government should not fuel the fire by excessive borrowing at a time when that would just make the situation worse.

“The third option we have is supply side reforms, whether that is on energy or labour markets or childcare, moving people off welfare into work.

“That’s the supply side of the economy. Those are the three levels that we have and we’re working on all three of them.”

The Prime Minister said the Government has an “obligation” to taxpayers by not giving in to huge public sector pay demands, which risks fuelling inflation.

He said ministers must “act responsibly” when holding talks with trade unions on pay awards.

The British Medical Association has demanded 35 percent pay rises for its members and has crippled the NHS with strikes.

He added: “I’m Incredibly grateful to our public sector workers for the fantastic job they do. I’m pleased that we have found an agreement with a million NHS workers, half a dozen unions and the NHS staff council.

“But we found a way through. We found a pay deal that was fair, rewarded them for their hard work and recognised them for that.

“But it was also affordable for the taxpayer.

"That can be necessary, as a result of the Government has an obligation to them too. And it must be accountable.

“You talked about inflation and the financial context. Government borrowing prices are rising, not only for the Uk however for governments the world over.

"In that financial context, the Government has to behave responsibly. I don’t wish to do something that's going to make the state of affairs last more or it will likely be worse.

“We are going by way of it now, that’s how we're going to be guided.”