Category Archives: Cost of living crisis

UK food price rises could hit 15% over summer, report says

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Ukraine war, China lockdowns and Brexit help push up inflation, with products that rely on wheat worst hit

Food price rises in the UK could hit 15% this summer – the highest level in more than 20 years – with inflation lasting into the middle of next year, according to a report.

Meat, cereals, dairy, fruit and vegetables are likely to be the worst affected as the war in Ukraine combines with production lockdowns in China and export bans on key food stuffs such as palm oil from Indonesia and wheat from India, the grocery trade body IGD warns.

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Appeal court rejects last-ditch legal bid to block flight taking asylum seekers to Rwanda – live

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Court of appeal judges have rejected a last-ditch legal bid to block a flight due to relocate asylum seekers to Rwanda on Tuesday

Q: Your Northern Ireland protocol plan is holed below the water line because it has so much opposition in your party, isn’t it?

Johnson says the government needs to resolve the problems with the protocol.

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Four in 10 pandemic-era mutual aid groups still active, UK data suggests

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Groups set up to help out neighbours in 2020 are now helping people cope with cost of living, say campaigners

Four in 10 of the mutual aid groups that were set up at the start of the pandemic to make it easier for neighbours to help each other are still active and many have become established charities helping local people cope with the cost of living crisis, analysis suggests.

When the pandemic began, an estimated 4,000 mutual aid groups sprang up to offer assistance to those in need with a range of essential activities, from food shopping to collecting prescriptions and providing Covid information.

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Digitisation of food vouchers for UK families left them hungry and desperate

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Analysis: in a botched upgrade the fruit and veg Healthy Start scheme turned away numerous eligible low-income families

As the cost of living crisis blew up in March, and millions faced “starve or freeze” choices, it emerged – with dismal timing – that the rollout of the government’s newly digitised Healthy Start fruit and veg voucher scheme for low-income mothers was in chaos.

About 550,000 mothers who are pregnant or who have children aged three or under are in theory eligible for the scheme, which is worth between £4.25 and £8.50 a week. Designed to ensure their kids get their five-a-day portions, milk or formula, it should have been a timely boost.

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Zero-growth warning for UK economy as petrol prices surge

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OECD singles out cost of living crisis as a cause of Britain’s slide down growth league table

Boris Johnson’s attempt to reset his troubled premiership has received a double blow after petrol prices had their biggest daily rise in 17 years and a leading international thinktank said the UK economy would slow to a standstill next year.

Fears that Britain is heading for a prolonged period of 1970s-style stagflation intensified amid fresh evidence of the damaging impact of the war in Ukraine on the cost of living and growth.

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Albanese says cost of living concerns will be ‘front and centre’ of cabinet meeting

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Inflation, energy prices and wages growth on Labor’s agenda as pressure builds to provide relief to low income earners before October budget

The prime minister, Anthony Albanese, says a cabinet meeting on Thursday will consider how best to respond to the cost of living crisis facing Australians amid warnings inflation will significantly worsen this year.

The meeting of his new inner ministry comes after the Reserve Bank this week lifted the official cash rate by 50 basis points to try and get on top of rapidly growing inflation. All of the big four banks have passed on the rate hike to mortgage holders.

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Senior Tory MPs renew calls to Boris Johnson for urgent tax cuts

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High-profile MPs back demand from Adam Smith Institute to reduce tax burden and ease cost of living crisis

Senior Conservatives from across the party have renewed calls for Boris Johnson to implement urgent tax cuts as Downing Street played down the prospects of a shift in policy.

A string of high-profile MPs, from Steve Baker on the party’s right wing to Damian Green on its left, have backed a fresh demand from the Adam Smith Institute for the government to reduce the tax burden.

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Food strategy for England likely to be watered down

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People working with government on strategy say ambitious plans to tackle nature, climate and health crises have been ditched

The government is expected to water down its upcoming food strategy for England, ignoring the ambitious recommendations proposed in two government-commissioned reports, campaigners say.

The white paper, due later this month, was supposed to be a groundbreaking plan to tackle the nature and climate emergencies in response to eye-catching recommendations urged by the restaurateur Henry Dimbleby in his reports.

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‘Out of control’ gas prices likely to filter down to Australian consumers, food processor says

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Industry advocates push for eastern states to establish gas reserves as soaring energy costs put pressure on companies

One of Australia’s largest regional food processors says energy costs are “out of control”, with already elevated gas prices tripling since the company signed new contracts in early 2022.

Consumers will inevitably cop higher prices on their products with other costs also on the rise, including a jump of as much as 40% for raw materials such as tomatoes, carrots and apples in the past year, Jason Fritsch, the chief executive of Kagome, said.

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Labour urges spending watchdog to assess impact of chancellor’s £21bn package

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Shadow Treasury secretary asks Office for Budget Responsibility to examine Rishi Sunak’s emergency cost of living measures

Labour has called for an independent assessment of whether Rishi Sunak’s £21bn cost of living emergency package could cause inflation to rise even higher and a verdict on the fiscal impact of substantial borrowing.

Pat McFadden, shadow chief secretary to the Treasury, wrote to the Office for Budget Responsibility (OBR) to ask it to analyse the impact of the measures.

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Most small firms fear long-term fallout from UK’s cost of living crisis

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Half worry rocketing prices will cut spending, while three in four fear long-term damage to businesses

Three-quarters of small and medium-sized companies are worried about the long-term impact the cost of living crisis, soaring energy bills and rising inflation will have on their business, a survey has found.

Just over half (51%) of SMEs said they were concerned that rocketing prices would dent consumer spending, in response to Barclays’ SME Barometer, a quarterly survey of business sentiment conducted for the bank.

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‘Free meals for homeless’ cafe in London’s East End at risk as donations dry up

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The Canvas’s founder says takings were so low as cost of living crisis bites she thought tills were broken

The founder of a London social enterprise that gives free meals to refugees and the homeless has said it is at risk of closure because the cost of living crisis has led to a collapse in sales and donations.

Ruth Rogers, the founder of The Canvas in the East End of London, said there had been a dramatic collapse in trade in its cafe in recent weeks, with takings so low that one day she thought its tills were broken.

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Boris Johnson confident Tory MPs back him to survive as party leader and prime minister – as it happened

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This live blog is now closed. Boris Johnson changes ministerial code to axe need to resign for rule breaches

The Conservative MP Paul Holmes, who represents Eastleigh, has announced that he is resigning as a parliamentary private secretary in response to the revelations in the Sue Gray report.

Holmes, who was elected in 2019, was PPS to Priti Patel, the home secretary. A PPS – an unpaid ministerial “bag carrier” – is not a member of the government, but is considered part of the “payroll vote” and obliged to support the government in all divisions. Being a PPS is normally a stepping stone towards becoming a minister.

Revelations from the Sue Gray report that staff and cleaners were not treated properly is both disappointing and unacceptable. It is right that the prime minister apologised to staff. It clearly showed a culture in No 10 that was distasteful, and I am glad that there have been several reforms that Sue Gray has welcomed.

It is clear to me that a deep mistrust in both the government and the Conservative party has been created by these events, something that pains me personally as someone who always tries to represent Eastleigh and its people with integrity. Whether that is taking up your issues in parliament or helping people with their problems closer to home, since 2019 we have completed over 12,000 pieces of constituency casework. It is distressing to me that this work on your behalf has been tarnished by the toxic culture that seemed to have permeated No 10.

I’m not going to pretend that this is going to fix everything for everybody immediately. There are still going to be pressures. But it’s a very, very substantial commitment by the government to getting us through what will be, I’m afraid, still a bumpy time with the increase in energy prices around the world.

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Sunak U-turns on ‘energy profits levy’ in £15bn cost of living package

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Chancellor’s measures, including tax on oil and gas companies, criticised as too late and a ‘drop in the ocean’

Rishi Sunak bowed to months of pressure over the cost of living crisis with a £15bn package of support, part-funded by executing a remarkable U-turn to impose a windfall tax on energy companies.

Announcing the measures on Thursday, in a bruising week for the government, the chancellor said his “significant set of interventions” would help the poorest in society – with a one-off £650 payment for 8 million families on means-tested benefits, alongside an extra £200 for all energy bill payers that will not have to be repaid.

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Partygate: more Tory MPs call on Boris Johnson to resign after Sue Gray report – UK politics live

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Government attempt to move on with cost of living announcement undermined as three backbenchers say PM should go

Speaking on Times Radio this morning Paul Johnson, director of the Institute for Fiscal Studies, repeated the point he made on the Today programme about the need for the cost of living support package to be targeted at those most in need. (See 9.25am.) He also said Rishi Sunak should ensure that his measures were not inflationary. He said:

There’s a very strong case for giveaways to help those who are struggling most. But if you’re going to do that, because of the dangers associated with inflation, there’s a case for tax rises elsewhere so that there isn’t significant additional money swirling around in the economy.

Now we do have some tax rises coming in this year, so the chancellor is already taking some money out of the economy. But I think he does need to think quite hard about that balance and the risks associated with inflation. What you generally don’t want to do in the face of lots of inflation is chuck lots more money at the economy.

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Rishi Sunak to announce windfall tax on energy firms

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One-off levy to fund support package amid cost of living crisis which could include increase in benefits

Rishi Sunak will push the button on a controversial windfall tax on energy companies on Thursday, as he lays out measures to ease the pain of rising household bills.

The chancellor has confirmed speculation he will announce fresh support for Britons struggling with the cost of living crisis. The measures are expected to help the poorest households as rampant inflation pushes up the price of everything from food to fuel.

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More than a fifth of Britons struggling as grocery price inflation hits 13-year high

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Nine in 10 people say they are worried about the rising price of their shop, Kantar survey finds

More than a fifth of households in Great Britain say they are struggling to make ends meet as the price of the weekly grocery shop rises 7%, the highest level of inflation in 13 years.

Nine in 10 people say they are worried about the rising price of groceries, according to the market research group Kantar, putting the issue in second place behind concerns about energy bills as the cost of living crisis hits families hard.

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Rishi Sunak reportedly considering windfall tax on electricity generators

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Levy could be extended beyond oil and gas producers to help households in cost of living crisis

Rishi Sunak is reportedly considering imposing a wider windfall tax on electricity generators, as well as on oil and gas producers, that could bring in billions of pounds to help households struggling with soaring food and energy costs.

The chancellor has instructed Treasury officials to work on plans for a potential tax on more than £10bn of excess profits made by electricity generators, including windfarm operators, according to sources cited by the Financial Times.

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Thousands of NHS workers may quit for better-paid jobs, ministers warned

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Exclusive: health leaders call for uplift for lowest-paid staff, to prevent ‘mass exodus’ to pubs and supermarkets

The NHS faces a “mass exodus” of thousands of staff to better-paid jobs in pubs, shops and supermarkets as a result of the cost of living crisis, ministers have been warned.

Health leaders fear significant numbers of lower-paid workers will leave for higher wages in the private sector amid rising food and heating bills and soaring inflation. The NHS already has 110,000 vacancies, and there are fears that a further deepening of the workforce crisis will “jeopardise” the ability of hospitals to tackle record-high waiting lists.

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No 10 admits PM meeting with Sue Gray was instigated by Downing Street – UK politics live

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Latest updates: PM’s spokesperson clears up that No 10 requested meeting after Simon Clarke suggests it was the other way round

The Downing Street lobby briefing has just finished, and the PM’s spokesperson told journalists that Boris Johnson has still not received the Sue Gray report into Partygate. The spokesperson did not say when it would be arriving, but it is not expected to be published today.

Boris Johnson has recorded a clip for broadcasters during a visit to a school in south-east London. PA Media has written up the key lines.

I’m not attracted, intrinsically, to new taxes. But as I have said throughout, we have got to do what we can - and we will - to look after people through the aftershocks of Covid, through the current pressures on energy prices that we are seeing post-Covid and with what’s going on in Russia and we are going to put our arms round people, just as we did during the pandemic.

Of course, but on the process you are just going to have to hold your horses a little bit longer. I don’t believe it will be too much longer and then I will be able to say a bit more.

It’s basically very rare disease, and so far the consequences don’t seem to be very serious but it’s important that we keep an eye on it and that’s exactly what the the new UK Health Security Agency is doing.

As things stand the judgment is that it’s rare. I think we’re looking very carefully at the circumstances of transmission.

It hasn’t yet proved, fatal in any case that we know of, certainly not in this country.

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