Johnson Clashes With Sunak on U.K. Spending, Sunday Times Says

U.K. Prime Minister Boris Johnson clashed with Chancellor of the Exchequer Rishi Sunak about spending plans that will cost billions of pounds, the Sunday Times reported, citing unidentified cabinet minister and officials.

Seeking to save money, the Treasury is weighing whether to scrap a commitment that would hand pensioners a 6% increase in payouts at a time when young people in the workforce are being squeezed, the paper said. Sunak, it added, has refused to fund Johnson’s 200 million-pound ($276 million) project to build a new royal yacht.

Tensions are likely to build next week when Health Secretary Matt Hancock is seeking 5 billion pounds a year to pay for the care of elderly people. Sunak is worried the plans don’t have sufficient funding and doesn’t want to increase taxes on families to pay for it, the paper said. The chancellor has ruled out increasing capital gains tax but sees pensioners as doing well enough to pay more, the paper said, citing one minister.

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