Rishi Sunak announces cost of living measures – key points at a glance
Rishi Sunak says the government will set out help those for whom the “struggle is too hard and the risks are too great” amid the cost of living crisis. “This government will not sit idly by,” he adds.
The chancellor says the UK is experiencing the highest inflation for 40 years, averaging about 9% this year. Russia’s war in Ukraine and Covid lockdowns in China are having the biggest impact.
Sunak says “we can get inflation under control,” although it admits it may take time. The Bank of England’s independence will help, while the government must not “excessively add fiscal stimulus” to increase inflationary pressures. This means the government’s support must be temporary and targeted. Finally, he says the government must fix supply issues which have added to inflation.
“We will provide significant support to the British people,” he says.
Aubrey Allegretti, political correspondent: Sunak invokes the high level of support he was praised for providing during Covid, saying the government will “do what is right, as we did throughout the pandemic”.
To satisfy concerns from some Tory backbenchers about too high levels of spending only fueling the inflation problem, the chancellor says the financial support being unveiled today will be limited and targeted.
He promises to make sure that those for whom “the struggle is too hard … are supported”.
The chancellor announces a “temporary targeted profits levy” to tax extraordinary profits of energy companies, while still incentivising investment.
The levy will raise about £5bn of revenue, helping to fund the government’s energy support package.
Sunak says “we should not be ideological about this – we should be pragmatic,” arguing that the government can tax these profits fairly and in a way
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