The chancellor has said the UK has no alternative but to raise interest rates to tackle rising prices, and the Government would be ‘unstinting in our support’ for the Bank of England to do what it takes to slow inflation. In theory, raising interest rates makes borrowing more expensive, so consumers have less to spend and buy less which should slow the rate of rising prices. Higher rates should benefit savers - if banks pass them on to their customers. But they have been reluctant to do so to savers this time, which has given customers less of an incentive to save. Housebuilder Ian Burns said people were being very cautious and were taking longer to make decisions. ‘Over the past three or four weeks, we've seen a slowdown in reservations. We can't just continue to build houses if we don't have customers for them.’