‘Go faster’ on ideas to solve crisis, says PM
BORIS JOHNSON has told his ministers to “go faster” in delivering ideas to alleviate the cost-of-living crisis but was resisting growing pressure to hold an emergency budget.
The Prime Minister urged Cabinet ministers to be “as creative as possible” as he seeks initiatives to reduce the pain without requiring fresh funding from the Treasury.
Levelling Up Secretary Michael Gove ruled out an emergency budget, which was receiving support from some Conservative backbenchers as well as Labour. He insisted that claims of a split between Chancellor Rishi Sunak and Mr Johnson over the need for more financial support were “overinflated”.
Former Brexit secretary David Davis called for ministers to swallow their pride and initiate tax cuts before the summer at the latest. The Conservative MP told reporters: “Ideally I want to see a reversal of the national insurance increase and an elimination of VAT on fuel because people are already suffering from a £600-£700 increase in fuel costs, they’re already suffering from increasing food costs and other inflation and so, from a point of view of the ordinary family, it’s vital we do something very soon.”
Asked how quickly it should be enacted, he said: “As soon as we can, certainly before the summer.”
“I don’t care whether you call it an emergency budget – however you do it, the title is irrelevant. The amour propre [vanity] of the Government or the ministers is secondary to the people and we should do it now.”
Under fire for failing to use the Queen’s Speech to announce fresh help, Mr Johnson suggested he and the Chancellor would announce more “in the days to come”.
But the Treasury quickly shot down Mr Johnson’s suggestion of further “fiscal firepower”.
Mr Gove told Sky News: “There won’t be an emergency budget. It is sometimes the case that the words from a prime minister or minister are over-interpreted.
“The Prime Minister is right. We will be saying more and doing more in order to help people with the costof-living challenge we face at the moment, but that doesn’t amount to an emergency budget. It is part of the work of government. Last night the Prime Minister convened a group of ministers – we have all done work on some of the things we could do to help. Those policy initiatives will be announced by individual departments in due course as they are worked up.”
On Tuesday, Mr Johnson chaired a meeting of the domestic and economic strategy committee with senior ministers. His official spokesman said: “The Prime Minister urged ministers to go faster and be as creative as possible in ensuring the Government is doing everything on this important issue.”
No 10 said the Chancellor had already set out “substantial support” in the form of “fiscal measures”, but the work now is looking for other ideas. The spokesman added: “In the days to come you will hear more from the Prime Minister on this. The Chancellor and the Prime Minister are working extremely closely on this.”
Households face soaring energy bills, inflation is forecast to hit 10% and welfare payments and wages are falling behind increases in prices.
Meanwhile, Tory MP Lee Anderson faced calls to apologise for claiming people in the UK use food banks because they “cannot cook properly” and “cannot budget”.