Six measures Rishi Sunak could take to combat UK’s cost-of-living crisis

Six measures Rishi Sunak could take to combat UK’s cost-of-living crisis

Rishi Sunak is under pressure from Tories and the opposition to make this week’s spring statement into an interventionist mini-budget to tackle the cost of living and impact of the Ukraine war. Here are the key issues:

Labour and Tory backbenchers are pressing for April’s planned rise in national insurance to be delayed or scrapped. Announced by Sunak and Boris Johnson last autumn to raise funds for the NHS and social care, it is expected to bring in £12bn. The pair used a joint letter to a Sunday newspaper to commit to the policy. This could make reopening the issue politically difficult. Calls to scrap it have multiplied given the UK’s worsening cost-of-living crisis and a stronger than expected performance for the economy and government finances in recent months.

Benefits usually increase in April by the previous September’s rate of inflation, which was 3.1%. Experts say that while the system works when inflation is stable, the recent growth in living costs calls for a bigger rise. The Bank of England says inflation could hit 8% this April.