Expenses of Living allowances and contingency tax – a brief overview of Rishi Sunak’s measures | Expenses of living crisis

Opening remarks by Sunaka

Rishi Sunak says in government we will set out help those for who “struggle that’s too much hard and risks too great” among cost of life crisis. “This government will not sit idly by,” he said. adds.

Chancellor says Great Britain is going through highest inflation for 40 years, on average about 9% of this year. Russian war in Ukraine and quarantine due to Covid in China has the biggest impact.

sunak says “we can get inflation under control,” though he admits it could take time. Bank of England’s independence would help while government should not “excessively add fiscal stimulus” to increase inflationary pressure. It means governments support should be temporary and targeted. Finally he says in government should fix supply problems that added to inflation.

“We will provide significant support the British people,” is he says.

Aubrey Allegretti, political commentator: Sunak calls high of support he was praised for provision during Covid, speaking government will “do what’s right, like we did during the pandemic.”

To address the concerns of some Tory supporters that levels are too high of spending only fuels the inflation problemchancellor says in financial support presented today will be limited and focused.

He promises to do sure What do you want for whom ” struggle that’s too much hard … are supported.”

Contingency tax

  • The chancellor announces a “temporary earmarked profit tax” to tax excess profits. of energy companies while continuing to stimulate investment

  • The collection will raise about £5 billion. of income by helping fund governmentenergy support package

  • sunak says “we should do not treat it ideologically – we should be pragmatic, arguing that government can fairly tax those profits and in a way that does not deter investments

  • The collection will be phased out when current high prices fall with “expiration clause” written in to legislation

Aubrey Allegretti, political commentator: As he faces loud screams from the Labor benches for bowing to their calls for contingency tax despite months of opposition policy Rishi Sunak emphasizes that this move pursued by previous governments, including conservative, he adds fast.

Sunak emphasizes that the oil and gas sector is not making “extraordinary profits” through insight. business decisions or efficiency, but how result of “growing global prices of goods controlled in part of the Russian war.

Strives again distance yourself from accepting the opposition’s policychancellor says he is looking for a “reasonable middle ground” and emphasizes people “should don’t be ideological about it.”

welfare support

  • sunak says in government will be targeted financial support for the poorest households

  • government will send directly about 8 million households one-off “cost of accommodation fee” of £650 direct to people bank Accounts

  • support is an worth more than £5 billion for give people confidence that we will support them during this difficult time”

  • The payment will go to households in check of social benefits

  • Chancellor says This system is an more more efficient than increasing the value of benefits

Aubrey Allegretti, political commentator: Given that the Conservatives now represent many more places with higher levels of deprivation, Sunak was pressured by deputies from those districts to provide support to their constituents who are in work but low-paid, temporarily unemployed or off work long-term due to illness or disability.

The chancellor is trying show he understands immediacy of their struggle saying that “right now they face an incredibly difficult choice” – and can’t wait for confidence in your home finances until autumn.

pensioners and disabled households

  • Chancellor says 8 million households of pensioners will receive a “pensioner’s cost of accommodation fee” of £300

  • He says The 6 million beneficiaries of disability benefits without a means test will receive a payment of £150.

Aubrey Allegretti, political commentator: This is a particularly important demographic of voter: Sunak will be careful of to make pensioners feel just how is it supported in in run up to next winter.

He emphasizes that they are “disproportionately affected” higher energy costs due to the fact that they are less likely to exceed up your income through workand facing higher energy costs from expenses more time in home.

Universal support measures

  • Chancellor says it’s right to do it support all families with in cost of life crisis, and need

  • sunak says redemption of repayment loan of £200 repayable in October, will be turned into a grant. The payment will be doubled to £400. for everyone

  • Financing worth 6 billion pounds, he says, adding: “We on in side of hard-working families

Aubrey Allegretti, political commentator: rounding up his concrete, targeted announcements, Sunak has yet to demonstrate that cost of life crisis faced by big section of in population – No just several million people.

So he summarizes financial support announced so far, but admits that “we recognize risk that with Any policy there may be small numbers of people who fall between the cracks.

General support package

  • Chancellor says in total cost of a life support is an worth from £15bn to help families with rising costs, while supporting most vulnerable in society

  • This is on upper of £22 billion announced in Spring

  • For all supportalmost all of The 8 million most vulnerable households will in total receive at least £1,200 in support

  • Sunak concluded: for the poorest in society, “they will feel some of the burden has been reduced, some of pressure has risen. They will know This government stands by them”

Aubrey Allegretti, political commentator: sunak has faced building pressure to do big intervention, not least after Ofgem said this week that residential energy price cap will rise on just less than £1200.

Hoping it will key argument for persuasiveness critics on his benches and those of the opposition, he says is “the very amount” policy that he unveiled today will provide for “the most vulnerable people”.

Although the House of Commons was a bit emptier given the break just around the corner, he gets support from fellow MPs including Boris Johnson. who pats the chancellor on in back how does he sit down.

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