Sage Sunak says the government “will not sit still” and has the tools to deal with inflation over time.
London:
UK Chancellor Rishi Sunak introduced a number of measures in Parliament on Thursday, including a one-time payment for struggling families and a temporary tariff on the high profits of oil and gas companies, as part of Britain’s বিল 15 billion living assistance package. Rising inflation and the cost of living crisis.
The finance minister of Indian descent, who has been under pressure to come up with a plan to tackle the UK’s highest inflation rate in decades, said he knew people were worried about the bill.
In his statement to the House of Commons, Sunak said the government “will not sit idly by” and has the tools to deal with inflation over time.
“We know people are being challenged by the cost of living and that’s why today I’m stepping in with more support to help with rising energy bills,” Sunak said.
“We have a collective responsibility to help those who are paying the highest price for our high inflation. That is why I am aiming for this significant assistance to the millions of the weakest people in our society. I said we would stand by the people. And what does this support do today?” He said.
A new, one-time GBP 650 payment will be made to over 8 million low-income households with universal credit, tax credit, pension credit and other benefits, while disability beneficiaries with a separate one-off payment for GBP 300 and GBP 150 to pensioner families . The minister has already confirmed an energy bill discount due to come from October.
On Thursday, he announced that he would double the discount from GBP 200 to GBP 400, eliminating the need to return it over time. This means that low-income households will receive a GBP 400 discount on their energy bills from October, especially in the face of the effects of rising global fuel prices.
The Treasury claims that the new Cost of Living Support Package means that almost all of the 8 million most vulnerable families will receive at least GBP 1,200 extra this year.
To help pay for the additional assistance, the finance minister said a new temporary 25 percent energy profit levy would be introduced for oil and gas companies, reflecting their extraordinary profits. But to boost investment incentives, the new tariff will include a new 80 per cent investment allowance.
Sunak noted that the oil and gas sector was making “extraordinary profits” and that such tariffs would be charged at a rate of 25 per cent on profits and would eventually be phased out.
“It’s also true that companies that are making huge profits behind the record high global oil and gas prices are contributing. That’s why I’m introducing a temporary energy gain levy to help pay for this unprecedented support that encourages investment,” Sunak said. .
The opposition Labor Party has been calling for such an intervention on the high profits of the power giants in the form of a “windfall tax”. While Labor has claimed that the government is effectively implementing its concept under a different form, Sunak insisted that the new tariffs have identified an “intelligent middle ground” on the issue.
Opposition groups called for a halt to the protests, saying “the failure of the government’s top leadership to deal with the lockdown-violating parties on Downing Street has led to a flurry of announcements to change the headlines away from the Partigate scandal.” PTI AK ZH ZH ZH
