It was claimed that Jacob Rees Mogg leads a Tory tax rebellion over the crisis in cost-of living.
Boris Johnson, the leader of the Commons, told Boris Johnson that it was impossible to justify a tax increase in April while heating and food costs are rising for families.
Rees-Mogg suggested yesterday that the 1.25 percentage national insurance hike to fund social care reforms be scrapped during a heated Cabinet meeting.
The Financial Times reported that Rishi Sunak, Chancellor of India, resisted calls to cancel or delay the levy.
There is a a growing Tory tax revolt against planned tax rises while families face soaring costs for food and heating, it was claimed last night
Business leaders had warned about spiralling energy costs, which could cause higher prices for shopping and increase inflation by two percent.
An insider from the Government told Mr Rees Mogg that he felt saving money would be better than increasing taxes in order to finance improvements to the NHS.
His colleagues also said that he is ‘increasingly dissatisfied’ with the direction of Government policy, especially regarding Covid curbs.
However, Mr Rees Mogg’s allies insist that he is a ‘loyal supporter’ for the PM and decline to comment on his involvement in Cabinet.
Business leaders had warned about spiralling energy costs, which could cause higher prices for consumers and increase inflation by two percent.
Yesterday night, it was reported that Jacob Rees Mogg, Commons leader, told Boris Johnson that an April tax increase could not be justified when families are facing rising food and heating costs.
Surveys of nearly 5,500 businesses by the British Chambers of Commerce found that three-fifths of them expect prices to rise in the coming three months due to increased energy costs.
As the energy price caps are raised, families will be warned that their domestic gas and electric bills may rise as high as 50% in April.
Johnson rejected last night’s demands for a suspension of green levies on household bill bills, in order to reduce consumer pressure.
Yesterday, chief executives of energy companies called on Business Secretary Kwasi Kwarteng to remove the VAT and levies from their bills at a meeting.
They also asked the Government to provide loans so they can in turn help customers and for an increase to the £140-a-year warm homes discount available to the poorest households.
When asked if the plans would be put into practice immediately, the spokesperson for the Prime Minister said that he was unaware of any changes. However, he stated, “I am not aware of any additional changes at this time, but we continue to review it and listen to the most affected.”
When asked if green levies would be retained on bills, he answered: “There are no plans to alter that approach.”
The Prime Minister appeared to also rule out reducing VAT on fuel this week, stating that it would not benefit the most vulnerable.
Energy industry bodies warned that the April increase in domestic oil prices could result in a 2 percent rise in living expenses.
Inflation was at its highest point in ten year, according to figures published last month. It reached 5.1% in November and December.
Emma Pinchbeck, chief executive of Energy UK, stated that there is an overall price risk for the whole economy. It doesn’t only affect energy retailers.
“It’s very likely that Treasury itself will have to make a decision on what to do since this affects not only energy retailers but the entire economy. The inflationary effect of energy prices going up in this manner could range from one to two percentage points.
British Chambers of Commerce stated that firms have a ‘huge headache’ due to continual supply chain disruptions and inflation.
- There are increasing fears that another supplier of energy could go bust like the 25 who have been bankrupted since August. Together Energy seeks to inject funds as it is facing the possibility of running out of cash in the next month.
Food bills up £15 a month
Food bills are rising by £15 a month due to big increases in the cost of fresh meat such as beef and lamb.
According to research, inflation on household essentials is at 3.5 percent. This represents an increase of the average amount over a previous year.
This is the largest figure in nearly four years. The exception to 2020, which was due to the effects of the pandemic, is a small blip.
Waitrose staff stack vegetable shelves in London’s Waitrose supermarket
Kantar Retail Analysts, who provided the data, stated that fresh beef prices were up 12.2% compared to a year earlier, while fresh lamb was up 9.5%.
These figures cover four weeks leading up to Christmas. They also reveal a 11.4 percent increase in sales of savoury snacks, and 9.4% on crisps. Grocery sales in December were at £11.7billion.
Fraser McKevitt from Kantar stated that “people seized on the chance to celebrate Christmas after.” [2020’s]Muted celebrations’