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Snacks feel increasing pressure from the Tories to mitigate the effects of rising living costs

UK budget update

British Prime Minister Rishi Sunak is under increasing pressure from Tory to mitigate the effects of rising living costs this winter, similar to the pain a senior member suffered at home in the 1970s and 1980s. There is.

Snacks are feeling political heat almost every day, families are experiencing sharp rises in energy prices, soaring food prices, and — According to the Bank of England Thursday — Inflation is over 4%.

Thursday’s BP warning “Temporarily” closed Due to the shortage of tank truck drivers, there is growing concern among Tory parliamentarians at some gas stations that the country is heading into the dark for months.

For now, snacks are Next month’s budget — Claims that rising wages and booming job markets are mitigating the effects of rising prices.

He wants soaring prices and disruption of supply Turns out to be temporaryHowever, former Cabinet Minister Damian Green said:

“In the 70’s and 80’s, living expenses were a big concern,” he said. “But now the problem is back on the front lines,” Green said, with significantly higher prices on track.

Ofgem, an energy regulator, plans to raise the invoice price cap by 12% on October 1, and economists expect another 15-17.5% increase in April next year. Some Tory lawmakers are afraid that Prime Minister Boris Johnson is facing his own “winter of discontent.”

Many of the global supply issues are beyond the control of snacks, but the opposition Labor Party believes it will end the prime minister’s decision. £ 20 a week “temporary” rise Benefiting from Universal Credit, some families will blame him as households tighten.

Labor pension secretary Therese Coffey has snacked to mitigate the impact of next month’s universal credit cuts by adjusting the taper rate to help workers maintain more additional income, government officials said. Prompted.

Snacks have so far resisted Coffey’s debate in pre-budget public spending bids and pressure to maintain a universal credit hike from Tory lawmakers.

In a leaked proposal first reported by the Daily Mirror, Coffey proposed reducing the taper (the rate at which Universal Credit is withdrawn for each additional pound earned) from 63p to 60p. This move can cost up to £ 1 billion.

No final decision has been made, but snacks will be forced to tackle the problem of rising costs with the October 27 budget.

Torsten Bell, director of the Resolution Foundation think tank, said: “The danger to the government is that the reduction of Universal Credit could” own “the crisis of living expenses. “

Conservative MPs have received invitations to meet with snacks to discuss tight financial conditions prior to budgeting. Bacon sandwiches are served for breakfast, and “warm white wine” is served at the House of Commons in the evening.

Many MPs have been plagued by Sunak’s warning that increased spending (such as a £ 6 billion increase in UC annually) should be covered by a 1p and 5p increase in basic income tax. I’m leaving. Rising fuel tax.

After this month’s snack decision Raise national insurance premiums To add £ 12bn a year to health and social care — the increase will come into effect in April next year — many Tory lawmakers refuse to allow higher taxes.

Snacks have also frozen their personal income tax deductions starting next April. This means that people will put more pressure on their households, just as they did when they came out of a potentially harsh winter.

“For the past few years, spending hasn’t been limited, but it’s over now,” said one Tory MP briefed by Sunak. Parliamentarians are worried about rising living costs, but “we are more nervous about tax increases,” he said.

Another lawmaker said that so far, the number of emails from stakeholders concerned about rising living costs is Blockade Doom Journey to Barnard Castle By Dominic Cummings, former Johnson Chief Aid — the benchmark used by the MP to measure public anger.

Sunak has helped over difficult times with a 4-5% increase in basic wages and many government-sponsored schemes to help people get back to work and retrain. Tells MP.

But another former minister, Steve Baker, said, “I’ve long believed that inflation would continue to occur this winter, and now there’s an energy crisis in addition to that.” .. Like Green, he opposed the reduction of Universal Credit.

“I’m sorry but, Level up It doesn’t make much sense for the public to see rising bills, rising interest rates, and rising costs to meet net zero. “

Conservative strategists are nervously watching public opinion as prices begin to rise. Labor leader Sir Kiel Starmer, who will address next week’s party convention, is expected to focus on the cost of living crisis.

Snacks feel increasing pressure from the Tories to mitigate the effects of rising living costs

Source link Snacks feel increasing pressure from the Tories to mitigate the effects of rising living costs

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