London Daily

Focus on the big picture.
Thursday, Sep 10, 2026

Cost of living crisis: immediate support from Sunak a ‘moral imperative’ – CBI

Cost of living crisis: immediate support from Sunak a ‘moral imperative’ – CBI

Boss Tony Danker wants chancellor to aid households skipping or having smaller meals as energy bills soar
Pressure on the government to help those hardest hit by Britain’s cost of living crisis has intensified after the head of one of the country’s leading employers’ groups said immediate support was a “moral imperative”.

Tony Danker, the director-general of the CBI, said Rishi Sunak should step in to provide assistance to households skipping meals as a result of rising food and fuel bills.

Figures on Wednesday are expected to show the annual inflation rate rising above 9%, and Danker said it was “unacceptable” that people were faced with the choice of whether to heat their homes or eat.

Sunak has pledged to provide more support for people affected by the latest sharp rise in energy prices triggered by Russia’s invasion of Ukraine, and Danker called on the chancellor not to wait until the autumn before acting.

While urging caution about bowing to demands from some Tory MPs for a tax-cutting summer mini-budget, the head of the CBI said Sunak should move on two fronts at once.

“The first is to help people facing real hardship now; it’s the moral underpinning of our economy and society,” Danker said. “Recent surveys suggest more than one in 10 households have skipped – or had smaller – meals in the past month because of a lack of affordability, while about half a million more households are expected to face choices between heating and eating. Putting pounds in the pockets of people struggling the most should not be delayed.

“Secondly, start stimulating business investment now – we will need to ensure that there is economic growth in the pipeline to avoid any downturn in our economy that could worsen or prolong the cost-of-living crisis.”

Danker said many of the people running UK businesses had never experienced the current combination of high inflation and weak growth, adding that confidence in boardrooms and among investors had been hit.

Danker called for a five-point plan to boost investment: cashflow support for firms; a commitment to green growth; setting out a roadmap for infrastructure; ensuring money already announced flowed into the economy; and unlocking investment in digital.

“The chancellor’s clear intention to use a forthcoming budget to cut taxes on business investment should become a firm commitment now,” he said. “It will ensure that any firm pausing on investment now will be bold, decisive and back their original plans. This matters for everyone because it guarantees that any slowdown in growth will have a short and shallow shelf life.”

Danker was more cautious about backing a fully fledged mini-budget, expressing concern that a big stimulus package would further fuel inflationary pressure.

“We do need to avoid big injections to economic demand that might worsen inflation, and focus on getting the supply side of our economy moving. So big economic boosters should be deferred until safe to do so. Government should stay flexible and support the economy in the right way at the right time.”

The CBI is opposed to financing a support package through a windfall tax on North Sea energy companies, but would back Sunak if he decided to target poorer households through a one-off payment or an increase in universal credit.

Energy bills for the average household rose by almost £700 to just under £2,000 a year in April, and the Bank of England is expecting a further £800-a-year rise in October.
Newsletter

Related Articles

0:00
0:00
Close
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
×