Sir Keir Starmer demands urgent action and emergency budget to help households

SIR KEIR STARMER has called for an emergency budget to address the “yawning chasm” he says has been left by the Government’s approach to the cost of living crisis.

The Labour leader said an urgent financial budget was needed to scrap the National Insurance hike, introduce a further business rates cut for small and medium-sized firms and put more money into insulating homes. Labour also wants the Government to introduce a “one-off windfall tax” on the profits of oil and gas producers, to go towards additional cuts to household bills.

Sir Keir’s intervention came after Downing Street asked Cabinet ministers to submit ideas for “non-fiscal measures” to ease the cost of living crisis ahead of the next budget, which is due in the autumn.

Under plans announced by Mr Sunak in February, the Government will “take the sting” out of rising costs by offering grants of up to £350 in the form of upfront energy bill discounts to 28million households from October.

But, speaking last week, Keith Anderson, the chief executive of Scottish Power, warned that further price rises later this year are going to be “horrific”. Mr Sunak is planning a further package of measures in the autumn budget.

Sir Keir said: “Labour has put forward sensible, costed, practical measures that would give immediate help to working people up and down the country. The Government should hold an emergency budget to enact them, and address the yawning chasm left by the spring statement. Now is the time to act.”

A Government source said: “We’re already providing £22 billion worth of support this year, including uplifting wages for the lowest paid, helping those on Universal Credit keep more of what they earn, and providing generous support for energy bills. But there will be a number of ways we can help households through this difficult time that don’t rely on using taxpayer funding and don’t push up debt even higher.”

‘Labour has put forward sensible, costed, practical measures that would give immediate help’