Rishi Sunak has warned of ‘tough’ months ahead for Brits grappling with the living cost crisis.
The Chancellor made his remarks after startling were figures released by the Resolution Foundation which revealed prices in the UK are rising at their fastest rate in more than 40 years.
Last night, Mr Sunak said the government was still working to lessen the impact of the living cost crisis.
But he also spoke of a ‘perfect storm’ of supply shocks rocking Britain, warning that ‘the next few months will be tough’.
In his speech to the Confederation of British Industry (CBI), he said: ‘We need you to invest more, train more, and innovate more.
‘In the autumn Budget we will cut your taxes to encourage you to do all those things.
‘Our role in Government is to cut costs for families. I cannot pretend this will be easy.
‘The next few months will be tough, but where we can act, we will.’
The Chancellor also used his speech to warn of the severity of the economic situation facing the UK.
He added: ‘I hardly need to tell this audience that the economic situation is extremely serious.’
‘A perfect storm of global supply shocks is rolling through our economy simultaneously.’
His comments come after Tory MPs voted down plans to trigger an emergency budget despite the worsening cost of living crisis last night.
The Labour amendment to the Queen’s Speech was defeated by 312 to 229 tonight.
Over the last 12 months, prices rose to 9%, up from 7% last March.
It is the highest level of inflation the UK has seen since 1982.
Karl Handscomb, senior economist at the Resolution Foundation, told the BBC: ‘The main thing is the need to provide more support for those highly reliant on benefits.
‘If (the Treasury) get started now, they can do it before the next energy price rise in October.’
A spokesman for the Treasury told the broadcaster: ‘We understand that people are struggling with rising prices, and while we can’t shield everyone from the global challenges we face, we are supporting British families to navigate the months ahead with a £22bn package of support.’
Earlier this week Mr Sunak’s colleague, the Home Office’s safeguarding minister Rachel Maclean, sparked outrage after suggesting people should ‘work more hours’ to combat the living cost crisis.
She told Sky News: ‘I think what we need to focus on now is over the long-term.
‘We do have these short-term pressures on us that we’re all aware of.
‘But over the long-term we need to have a plan to grow the economy and make sure that people are able to protect themselves better, whether that is by taking on more hours or moving to a better-paid job.’
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