The comments came amid reports that Sunak may announce a pay freeze for government workers when he delivers his annual spending review to Parliament on Wednesday.
That triggered questions about whether he was preparing to clamp down on spending and raise taxes amid forecasts that government borrowing will reach 372 billion pounds this fiscal year.
“It’s real, it’s not just numbers of a chart, it’s people’s lives, it’s their livelihoods, their security that’s being impacted.
The matter is even more fraught now, as public sector workers, including nurses, firefighters and care workers, bore the brunt of tackling COVID-19.
“So there is an enormous amount of uncertainty at the moment and it wouldn’t be right to make long-term decisions right now.”