Boris Johnson, the British Prime Minister, said on Tuesday that the government couldn’t help everyone get through the present cost-of-living issue and that the government needed to be cautious with its expenditures to prevent fueling an inflationary spiral.
Soaring costs are leading to the most severe strain on household budgets since the 1950s, putting pressure on the government to provide assistance to the poorest, particularly those who can’t afford skyrocketing energy bills.
Johnson admitted that the government would not be able to provide enough assistance to offset the higher expenses immediately, but said the government was working on a medium- and long-term solution.
‘I accept that those payments from the taxpayer – because that’s what it is, taxpayers’ money – won’t be enough to cover everyone’s expenditures right away,’ he told ITV.
‘Of course, in the short run, that will not enough. There’s a lot more we can do. But the most important thing is to ensure that we deal with prices in the medium and long term.’
When asked why welfare benefits will not rise in lockstep with inflation, Johnson said the government needed to avoid more inflation. In March, it reached a 30-year high of 7%.
‘Although you’re absolutely correct in pointing out that there is an inflationary risk, and it’s very serious,’ he continued, ‘it might grow worse, and that will have an impact on interest rates, and that will have an impact on the cost of borrowing for everyone.’
‘And, as much as I hate to say it, we need to be cautious in our approach.’
According to Johnson, the government is considering offering assistance to families whose medical demands necessitate the usage of a lot of energy.
When delivering his budget statement towards the end of the year, Finance Minister Rishi Sunak said he will wait to see how energy prices behave in the coming months before deciding what additional support may be required.
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