Help must come, says former PM John Major on cost of living crisis

2 years ago 22
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"Help must come" for those struggling to pay their bills amid rising prices, ex-Prime Minister John Major has said.

Addressing a conference, Sir John said providing support would help bring "trust and respect back to politics".

He also warned that government couldn't raise spending while reducing tax and that "hard choices" had to be made.

Minister Rachel MacLean said the government was putting help in place to ease short-term pressures, including through the Household Support Fund.

She also said that, over the long-term, government wanted "to grow the economy and make sure that people are able to protect themselves better, whether that is by taking on more hours or moving to a better-paid job".

She acknowledged these options might not work for everyone such as those "already working three jobs".

There's been criticism of her words, and Labour's shadow cabinet minister Ian Murray said her advice was "ludicrous" and "out of touch".

No 10 later defended the minister and accused critics of "seeking to twist the words unhelpfully".

Meanwhile some Conservative MPs have urged the government to adopt opposition proposals to raise money to help those struggling by implementing a windfall tax on energy companies.

Treasury Committee chair Mel Stride said he would normally oppose it but that current "extraordinary circumstances" meant there was a case for looking at "a one-off windfall tax".

He said the companies had made "supra-normal profits" and some of that money should be "channelled to those who are really struggling". His Conservative colleague Simon Hoare later tweeted his agreement.

Labour has said it will call for a vote to introduce the tax on Tuesday.

Ministers have previously rejected introducing a one-off tax on the profits of energy companies, arguing it would deter investment.

However, recently the government has been hinting that it could change its mind with Treasury officials saying the idea was not off the table.

A number of Tory MPs have privately expressed concerned that the government will make a U-turn - with one senior Tory saying they are "really irritated" about being made to vote against it on Tuesday.

'Unwelcome truth'

Making a speech in Newcastle, Sir John - who led the Conservatives from 1990 to 1997 - joined in the debate saying that rising prices meant people would be "utterly unable to meet the bills".

Address the National Cathedrals Conference, he said: "Help must come - and I hope it will come soon," adding that a lack of support would damage people's trust in government.

"Everyone needs to believe that The State cares about them - and not just the interests of the powerful, the motivators, and the elite.

"If the week lasts longer than the money, do the penniless believe The State cares about them?"

Sir John also warned that the government's levelling up agenda - aimed at reducing regional inequalities - would demand ministers making "hard choices".

He said the policy needed money and had to be paid for either by higher taxes, borrowing or cuts to other budgets.

"It is an unwelcome truth that lower taxes for everyone - and higher spending - do not go together."

The former prime minister concluded his speech by praising the younger generation who he said were "a force for good" despite "their habit of cutting holes in the knees of new jeans for the sake of fashion".

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