After a meeting with ministers, Boris Johnson has begun to search for solutions to the cost-of living crisis.
As Tory MPs, Labour and other Labour put pressure on the PM to take more action, he is currently considering proposals to relax childcare rules and create MoTs twice a year.
Downing Street stated that he had urged Rishi Sunak, Michael Gove and other senior ministers to “go faster” and to be as creative and innovative as possible in devising ways to alleviate the squeeze.
No10 said Mr Johnson would speak more about the matter ‘in coming days’. He also visited Finland to stress that the government will show the maximum energy’.
He said, “There will be more. Of course, there will be more in the months ahead.”
It is not certain that any significant intervention will be necessary after the Chancellor declared an emergency Budget unaffordable.
Although Nadhim Zahhawi has been seriously considering the idea, it is thought that the Department for Education may have reservations about the reduction of the ratio of children to adults in nurseries for lower cost.
Grant Shapps, Transport Secretary, was not able to attend the MoTs discussion as he is currently on an official trip to the US.
Senior Tories in the party have increased pressure on Johnson, calling for a stronger response.
David Davis was a former minister and said taxes should be cut now. Sky News interviewed him to say that ‘Fixing the problem immediately is better than waiting for people to suffer for six months’.
And another ex-Cabinet minister, Stephen Crabb, tweeted: ‘Conservatives tend to emphasise work, good budgeting/housekeeping, strong families etc as defences against hardship.
The problem for many is not being able to tick all the boxes. The government has already done much, but there is still more to be done.
No10 stated that Mr Johnson, pictured today in Sweden, would speak more about the matter ‘in coming days’. However it’s not clear that major intervention will be imminent following the decision of the Chancellor to omit an emergency budget
Downing Street reported that Johnson met with senior ministers Rishi Sunak and Michael Gove last night to urge them to “go faster” and to be as creative and innovative as possible in devising ways to alleviate the squeeze.
Mr Johnson set hares running in the Queen’s Speech debate yesterday by suggesting he and Mr Sunak would announce more cost-of-living help ‘in the days to come’.
While the Treasury rejected the suggestion quickly, aides stated that the PM was referring to MoT and childcare ideas. This would not require the government to spend more money.
However, Mr Johnson was said to have suggested to Tory MPs that cutting taxes would be the best solution to the pressure of rising inflation at last night’s No10 garden party.
The PM’s spokesperson confirmed that the new cost-of-living committee of the Government met after the Queen Speech. He said, “You can expect more work to come out of this discussion.” He urged ministers not to slow down and use as much creativity as they can in order for the government to address this critical issue.
“You can anticipate the committee to meet quite regularly in order to advance the work as quickly and efficiently as possible.
“In the days ahead, you’ll hear more from Prime Minister about this. This is a matter that the Prime Minister and the Chancellor are closely working on and will continue doing.
Tomorrow, Mr Johnson will meet his Cabinet. It is unclear if they will continue to wrangle over these issues.
In Finland this evening, he Johnson vowed to deploy the ‘maximum energy effort’ to help alleviate the cost-of-living crisis, promising more support ‘in the months ahead’.
“We will use all our energy, creativity, and ingenuity to support the British people. We know how difficult it is right now.
“But we’re still going to get through, just like through Covid.
“And, you know, all the money that we have already spent, there will still be more, and there will also be additional support over the coming months as the price of energy rises.
In a round of interviews this morning, Michael Gove said claims of a split between Mr Sunak and the PM were ‘overinflated’.
Sky News quoted Mr Gove as saying that there won’t be an “emergency budget.” Sometimes the words of a prime minister, or minister get misunderstood.
“The Prime Minister has it right. While we will say and do more to assist people in the current cost-of living crisis, it doesn’t mean that there is an emergency budget. This is part of government’s work.
‘Last night the Prime Minister convened a group of ministers – we have all done work on some of the things we could do to help. Individual departments will announce these policy initiatives as soon as they’re developed.
Sources close to government lowered the amount of progress made during last night’s meeting.
One person pointed out that none of the proposed measures amounted to wholesale deregulation.
One person told MailOnline that there wasn’t any forward motion on childcare policy. When asked if the proposal would be realized, a third replied: “God only knows.”
David Davis was a former minister and said taxes should be cut now. Sky News interviewed him to say that he believes it is important to fix the problem immediately, and not wait for people to have been suffering for six months.
Mr Davis told Sky News: ‘I don’t care what you call it, what I want to see is either a significant reduction in taxes – or preferably a reversal of the increase in national insurance.
“And I would add, frankly, that the fuel tax should be abolished.”
Davis was asked by a reporter when the project would be completed. He replied that it should take place before the summer. It should be done as quickly as possible, truthfully.
Inflation is expected to rise 10% by 2020, household energy bills are on the rise and so are welfare payments. Wages and benefits are also falling behind rising prices.
Labour leader Sir Keir Sternmer called the Government’s reaction ‘pathetic’ as he joined charities and economists in criticizing Mr Johnson’s plans.
Child Poverty Action Group stated that parents facing rising food prices will not find any relief in the short term.
Torsten Bell (chief executive at the Resolution Foundation think-tank) stated that ministers have not yet announced anything on the short term nightmare of high living costs.
Sir Ed Davey, Liberal Democrat leader, said that the Queen’s Speech ‘does not do anything to help millions of pensioners and families facing skyrocketing bills and eyewatering inflation’.