Cost of living
Chancellor to cut tax and offer help with energy bills
Rishi Sunak is planning tax cuts in the autumn and further help for households struggling with soaring energy bills.
The Chancellor will announce a warm home discount for three million of the poorest households in England and Wales that will reduce their bills by £150, according to The Times. How Scotland will respond is unclear.
Kwasi Kwarteng, the Business Secretary, has proposed raising the discount to £500.
In April the energy price cap, which limits the amount by which bills can increase, rose by 54% from £1,277 to £1,971. It is forecast to rise by a further 40% to £2,800 in October.
Mr Sunak will hold a budget in the autumn with the Treasury said to favour reducing income tax by 1p in the pound but other ministers believe that cutting VAT would provide a more significant boost to the economy.
On Wednesday Labour will submit an amendment to the Queen’s Speech, challenging the Government to hold an emergency budget addressing the cost of living.
Rachel Reeves, the shadow chancellor, will publish analysis claiming that levels of public and private investment in the UK will be 18% of GDP this year, compared with an average of 23% in other G7 countries. This is expected to last until 2027, which Labour says will lead to a £1 trillion “investment gap”.