Kit Malthouse puts ‘Government on war footing’ so new PM deals with cost-of-living crisis
MINISTERS are on a “war footing” to deal with the cost-of-living crisis as price rises hit a 40-year high.
Officials are drawing up plans to offer the next PM “various cards” to play when they take up office.
It comes after it emerged inflation had hit 10.1 per cent, its highest since 1982, with food price hikes the main cause ahead of energy and transport costs.
Just a day after the worst wage squeeze in 45 years was revealed, fears were also growing the Bank of England may more than double interest rates to four per cent by 2023
Cabinet Office Minister Kit Malthouse said options were being considered to help Brits deal with the cash pain.
He said: “We are putting the Government on war footing, if you like, so that a new prime minister in just a couple of weeks’ time is able to make some quick decisions on where he or she wants to take the country and the economy.”
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Tory leadership front-runner Liz Truss, who favours tax cuts to help struggling Brits, is planning an emergency budget if she gets into No10.
Rival Rishi Sunak said: “Liz’s plan is to say, ‘I believe in tax cuts not direct support’. I don’t think that’s right. A tax cut for someone on her salary means £1,700 of help.”
Labour wants a six-month energy price cap freeze at £1,971.
Shadow Chancellor Rachel Reeves said: “We must get a grip on rising inflation. Families are worried sick.”
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Meanwhile Tory peer Lord Rose blasted Boris Johnson for holidaying during the crisis.
He said: “The captain of the ship is on shore leave. Nobody is in charge.”