Boris Johnson pledges ‘jobs, jobs, jobs’ to help tackle cost-of-living crisis
The cost of living crisis was top of the agenda when Boris Johnson brought his cabinet to Staffordshire and the West Midlands.
The Prime Minister held his cabinet meeting in the region and ended his visit by viewing the Commonwealth Games stadium in Birmingham.
The journey north of senior politicians was part of a plan to show the public they are serious about the ‘levelling up agenda’.
And, Partygate apart, the current economic crisis dominated questions to the Prime Minister from the press and members of the public.
Significantly, Mr Johnson refused to rule out a windfall tax on the profits of energy companies to help relieve the pressure of the cost-of-living squeeze.
Chancellor Rishi Sunak has reportedly told Treasury officials to examine plans for a levy on the soaring profits of the oil and gas giants.
It follows an admission by BP chief executive Bernard Looney, who said his firm’s investment plans would not be affected by a windfall tax.
The Prime Minister, who visited Churchill China in Sandyford ahead of the cabinet meeting, said that, while he still does not like such taxes because of the impact on investment, it is something that will have to be considered.
Pressed on Mr Looney’s comments, he said: “Well, you know, then we’ll have to look it.” However, he added: “The disadvantage with those sorts of taxes is that they deter investment in the very things that they need to be investing in – new technology, in new energy supply.
“I don’t like them. I didn’t think they’re the right thing. I don’t think they’re the right way forward. I want those companies to make big, big investments.”
Mr Johnson urged Cabinet members to “bring the benefits of the Queen’s Speech to life” as they met for the away-day in Staffordshire.
Downing Street said ministers discussed how the new legislation will boost the economy, improve living standards and level up opportunities across the country.
Mr Johnson suggested that the Government will be coming forward with more assistance for hard-pressed families in July.
Downing Street was forced to deny that ministers are preparing an emergency budget to deal with the cost-of-living crisis after the Prime Minister suggested in the Queen’s Speech debate on Tuesday that there would be more help in the days to come.
However, Mr Johnson indicated there would be additional support over the summer rather than waiting for the Budget in the autumn to act.
“There is more coming down the track. July and so on,” he said.
“But what we will do is use all the ingenuity and compassion that we have and the fiscal firepower that we have as a result of the strong economic growth we had coming out of the pandemic.
“Our growth will return very strongly in the next couple of years.”
The Prime Minister pledged to be “very, very radical and forward thinking” but said he would “stick to the basics of our thinking about getting people into high wage, high-skilled jobs”.
He added: “We’re going to get through this. It’s going to take a lot of focus – but jobs, jobs, jobs is the answer – that is how we will unite and level up across the whole country, and get on with delivering on the mandate that the people gave us two-and-a-half years ago.”
His comments follow the first meeting this week of the Government’s cost-of-living committee, where he instructed ministers to come forward with proposals to ease pressure on household budgets.
In a statement ahead of the Stoke-on-Trent Cabinet meeting, Downing Street said the Government “will continue examining what more we can do to ease the pressures on hard-working people and families” over the “coming months”.
Households face soaring energy bills, inflation is forecast to hit 10 per cent, and welfare payments and wages are falling far behind the increase in prices.
Chancellor Rishi Sunak, who travelled with Mr Johnson, said he is not “naturally attracted” to windfall taxes, but he is “pragmatic” about the idea. He said: “What I do know is that these companies are making a significant amount of profit at the moment because of these very elevated prices. What I want to see is significant investment back into the UK economy to support jobs, to support energy security, and I want to see that investment soon. If that doesn’t happen, then no options are off the table.”
