Boris Johnson yesterday admitted Britain was going through ‘difficult times’ but said we were in a ‘much better position’ to deal with rising inflation than we were in the 1980s or 1990.
On the final day of campaigning before local elections today, the Prime Minister pledged to ‘support people in every way possible’ in the face of the cost of living crisis.
The comments came as the Bank of England looked set to raise interest rates to a 13-year high today as it tries to rein in inflation.
The Bank of England is expected to raise interest rates today to 1%
Prime Minister Boris Johnson, pictured in Southampton, yesterday rejected calls for a windfall tax on big energy companies to help tackle the UK’s cost of living crisis
During a visit to Southampton, Mr Johnson said: “The best future for the country is to get through the difficult times we are going through now, to support people in any way we can, but remember we are now seeing lots of jobs and people in high-paying, high-skilled jobs.
The prime minister also warned against imposing a one-off tax on big energy companies.
He said a tax would “stop investment” in new solutions and in the green energy the country urgently needs to develop its own energy supplies.
“The problem we have is that…it’s an incredible country, an incredible economy, the fifth largest in the world, but we’re powering France,” he said.
‘It’s crazy. We have not invested enough in our own home energy and we need these big energy companies to step up and invest their money in sustainable solutions. It’s a much better solution than crushing them and preventing them from making that investment.
The government has been criticized for not doing more to help ease the cost of living crisis – and for pursuing deeply unpopular tax hikes, including the National Insurance hike.
But while inflation is at a 30-year high of 7% and could even hit 10% later this year, unemployment is just 3.8%. It hasn’t been lower since 1974 and was above 10% for most of the 1980s and early 1990s.