The Courier & Advertiser (Fife Edition)
Soaring inflation spurs calls for poverty action
Boris Johnson hinted at future help for people struggling with the rising cost of living, but there was no immediate extra support as inflation hit a 40-year high.
The prime minister and Chancellor Rishi Sunak are under intense pressure to act after Consumer Prices Index inflation soared to 9% in the year to April, up from 7% in March, according to the Office for National Statistics (ONS).
Mr Sunak warned that he could not “protect people completely” from the costof-living squeeze, but the prime minister promised to “look at all the measures that we need” to get people “through to the other side” of the inflation spike.
Mr Johnson suggested that part of the rise in energy prices was because of the “tough” decision to sanction Russia following the invasion of Ukraine. The rise in CPI was the fastest measured rate since records began in 1989, and the ONS estimates it was the highest since 1982.
A large portion of the rise was due to the price cap on energy bills, which was hiked by 54% for the average household at the start of April.
The Bank of England has a mandate to keep inflation below 2%, but Governor Andrew Bailey has admitted to being helpless in the face of global pressures including a spike in energy costs and the war in Ukraine.
Mr Sunak said: “Countries around the world are dealing with rising inflation.
“Today’s inflation numbers are driven by the energy price cap rise in April, which in turn is driven by higher global energy prices. We cannot protect people completely from these global challenges but are providing significant support where we can.”
At Prime Minister’s Questions, Mr Johnson was repeatedly pressed on the issue by Labour leader Sir Keir Starmer.
Mr Johnson said: “Of course, we will look at all the measures that we need to take to get people through to the other side, but the only reason we can do that is because we took the tough decisions that were necessary during the pandemic.”
The Chancellor has already pledged around £22 billion in support, including £9 billion to deal with household energy bills and measures to mitigate the impact of April’s rise in National Insurance Contributions (NICs).
But he faces calls for more action immediately, rather than waiting for the autumn budget.
Reports have suggested that measures including increasing the warm home discount by up to £600 are under consideration.
One report suggested that the package to help with energy bills could be unveiled in July followed by tax cuts in the autumn.
Another reported that Mr Sunak was plotting a 1p cut in income tax from April 2023.
The Confederation of British Industry said it was “critical” for the Government to examine ways to help people facing hardship and support vulnerable firms.
The British Chambers of Commerce called for Mr Sunak to reverse the rise in NICs and give businesses a VAT discount on their energy bills. Shadow Chancellor Rachel Reeves demanded an emergency budget to tackle the living standards crisis.
She said: “Today’s inflation data will add to the worries families already face as prices soar and pay packets are crunched.”
Liberal Democrat Leader Sir Ed Davey said: “Families and pensioners on the brink need saving from soaring inflation but this Conservative Government is nowhere to be found.”
Imran Hussain, director of policy and campaigns at charity Action for Children, said: “These grim figures make clear that more and more families are starting to run out of road as they face inflation at its highest level in a generation, spiralling energy bills set to rise further and an entirely inadequate benefits system.”