Boris Johnson issues warning over inflation
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The Prime Minister is understood to be considering a number of measures to help those struggling with soaring costs after inflation skyrocketed. Chief among his considerations are cutting VAT or reducing income.
Ministers could also write off the £200 energy loan handed out to Britons in a bid to reduce their costs, it is claimed by The Sun.
Mr Johnson’s push for action comes as he looks to reset his premiership following last week’s devastating local election results.
The Conservatives lost almost 500 seats on Thursday as the public abandoned the party.
Cost of living fears are thought to be the biggest reason for the drop in support.
Backbench Tory MPs have demanded for months that the Prime Minister and the Chancellor take more action to reduce taxes to help those struggling in the current economic climate.
Rishi Sunak has been accused of promoting “un-Conservative” policies after the tax burden hit its highest level in more than half a century earlier this year.
“Why is the Chancellor making the UK the only advanced country respond to a global cost of living crisis by increasing taxes,” Conservative grandee and former cabinet minister John Redwood said following the election losses.
“Higher taxes make the squeeze worse.
“Higher taxes bring fewer jobs and less growth.”
Yesterday the Chancellor hinted he was preparing to take action.
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On a visit to Ipswich, he said: “We can do things to support people and we are going to do what we can to ease the burden.”
But he added: “The forces we are grappling with are global in nature and we are not the only country to be facing higher energy prices or higher inflation in general.”
The plan to take action comes after the Bank of England warned last week that inflation would likely hit double figures by the end of the year.
At the same time, energy firms are warning bills to heat homes could surpass £3,000 by the autumn.
Mr Johnson will use today’s Queen’s Speech in a bid to further prove to his backbenchers that he is taking action to deal with the people’s priorities.
Policing minister Kit Malthouse this morning acknowledged Government “alarm” at predictions of soaring inflation but downplayed hopes of rapid help in the Queen’s Speech.
He told Sky News: “As far as the cost-of-living crisis is concerned, it is incredibly challenging for people out there at the moment.
“Obviously, legislation takes some time to put in place, it has to go through both Houses, it can often be many months, sometimes over a year, before it hits the statute book.
“I do know the Prime Minister and Chancellor are in constant conversation about how we can be agile in assisting people through this challenging time.”
Mr Malthouse added: “We look with alarm at the predictions the Bank of England have made just in the last week or so of inflation peaking towards the end of the year and we will have to think carefully about what our response to that might be.”
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