London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

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
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×