In an interview with The Times, Sunak said he recognised people's anxiety about soaring mortgage repayments and said he would do "absolutely everything" he could to "grip this problem". But he made clear there was a limit to government intervention.

"It's right we're honest about the trade-offs we face — everyone now talks about borrowing, everyone appreciates that the government cannot do everything," Sunak told the newspaper.

Sunak declined to comment on whether he stood by the Tory manifesto pledge not to raise income tax, VAT or national insurance, according to the report. "I'm not going to talk about any tax policy at all," he said.

Asked whether he considered the offer of a joint ticket with Boris Johnson in the party's latest leadership election, Sunak said he had been "very clear with (Johnson) about the fact I had strong support from colleagues in parliament and I thought I was the best person to do the job."

Sunak became Britain's first prime minister of colour last month, taking over during one of the most turbulent eras in British political history.

($1 = 0.8791 pounds)