Downing Street rules out immediate cost of living measures

2 years ago 22
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No 10 has ruled out Boris Johnson introducing immediate measures to help people with rising energy costs

It comes as CBI director-general Tony Danker called for "all hands to the pump", echoing ex-Labour PM Gordon Brown's call for swift intervention in the cost of living crisis.

Downing Street said it recognised the public were facing "challenging times".

However, Mr Johnson's spokesman argued it would be up to his successor to make any decisions on further help.

Mr Johnson is due to leave office in early September, and No 10 said "by convention it is not for this prime minister to make major fiscal interventions during this period".

Earlier this year, the government announced a £15bn package of support to ease the cost of living crisis.

This included giving households a £400 discount on energy bills and £650 for the poorest households to help with wider living costs.

However, the government has come under pressure to do more, following worsening economic warnings.

Last week, the Bank of England forecast that the UK was heading into a recession, with inflation set to hit 13%.

Meanwhile, the energy price cap will go up in October, with industry analysts estimating average domestic energy bills could hit more than £3,600 a year.

CBI head Tony Danker echoed Mr Brown, saying that the prime minister and the candidates for the Tory leadership, Rishi Sunak and Liz Truss, "should come together to agree a common pledge to support people and help quell fears".

"The economic situation people and businesses are facing requires all hands to the pump this summer," he said.

"We simply cannot afford a summer of government inactivity while the leadership contest plays out followed by a slow start from a new prime minister and cabinet."

Scotland's First Minister Nicola Sturgeon has called for an emergency meeting with Mr Johnson and the leaders of devolved governments, to agree steps to help people.

Writing in the Daily Record, Mr Brown - who was prime minister between 2007 and 2010 - said the country faced "a financial timebomb" and urged Mr Johnson, Mr Sunak and Ms Truss to agree "an immediate Budget to prevent a winter heating catastrophe".

He also said Cobra, the government's emergency response committee, should be in "permanent session to deal with the coming fuel and energy crisis".

Speaking to the BBC's World This Weekend programme on Sunday, Mr Brown said there was "a vacuum" in government because "the prime minister is on holiday, the chancellor is on holiday, the two leadership candidates for prime minister are on the campaign trail."

'Convention'

Asked if Mr Johnson would summon a meeting of Cobra, No 10 said it would be up to Mr Johnson's successor to make any decisions on further support for households.

"By convention it is not for this prime minister to make major fiscal interventions during this period. It will be for a future prime minister," he said.

The spokesman also said there were no plans to recall Parliament, but that Mr Johnson and his Chancellor Nadhim Zahawi are meeting this week to discuss progress on the support measures already announced.

Meanwhile, the two candidates to takeover the leadership have been criticising each others plans to address mounting living costs.

Mr Sunak has warned that the plans of his rival Ms Truss "won't touch the sides".

Supporters of Ms truss say her proposed tax cuts would help people, but did not rule out offering further support.

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