Downing Street rejects quick cost-of-living adjustments

UK

Boris Johnson has rejected requests to implement an emergency cost-of-living budget, restart regular Cobra meetings, and recall parliament in the face of mounting clamour for immediate action. Mr Johnson’s official spokesperson stated that such decisions would be made by “a future prime minister,” and that the outgoing PM has “no intentions” to meet with leadership candidates Liz Truss and Rishi Sunak to discuss emergency measures.

In a similar vein to former Labour Prime Minister Gordon Brown, CBI Director-General Tony Danker urged “all hands to the pump” in response to the rising cost of living challenge. And Scotland’s first minister, Nicola Sturgeon, has requested an urgent meeting with the devolved administrations.
Downing Street acknowledged that the public was going through “difficult times.” However, Mr. Johnson’s spokesman emphasised that any choices regarding additional assistance would be left to Mr. Johnson’s successor. Early September will mark Mr. Johnson’s departure from office, and according to No. 10, “by convention it is not for this prime minister to undertake large economic measures during this period.”

The government promised a £15 billion package of assistance earlier this year to help with the cost-of-living crisis. This includes providing households with a £400 energy bill discount and £650 for the most impoverished households to assist with other living expenses.
But with the economy getting worse, there is pressure on the government to take greater action. The Bank of England predicted last week that the UK was about to enter a recession and that inflation would reach 13%. In the meantime, the energy price cap will increase in October, and according to industry analysts, home energy costs might rise to more than £3,600 annually.

Tony Danker, the head of the CBI, advised the prime minister and Liz Truss and Rishi Sunak, the two candidates for the Tory leadership, to “get together to create a single vow to support individuals and help allay worries.”
This summer, all hands must be on deck due to the dire economic circumstances that both individuals and businesses are facing. “We simply cannot afford a slow start from a new prime minister and cabinet after a summer of government lethargy as the leadership campaign plays out.”
According to the CBI, the prime minister should instruct the civil service to develop solutions for assisting the most vulnerable people, and both leadership contenders should have access to these possibilities.

When asked if Mr. Johnson, who recently returned from a vacation in Slovenia, would call a meeting of Cobra, No. 10 responded that any decisions regarding additional support for households would be up to Mr. Johnson’s successor.
“Conventionally, this prime minister is not supposed to make significant economic actions now. It is for a potential prime minister, “said he. The spokesman added that there are no preparations to recall the legislature but that Mr. Johnson and his chancellor, Nadhim Zahawi, will meet this week to discuss the advancement of the previously stated support measures.

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