British Prime Minister Boris Johnson said today that his government could not immediately help everyone cope with the current rising cost of living, adding that it needed to be prudent in its spending so as not to create an inflationary spiral.
The rapid rise in prices has contributed to the largest decline in household incomes seen in Britain since at least the 1950s, putting pressure on the government to support the most vulnerable, especially those who can not cope with rising energy prices.
Johnson acknowledged that his government could not provide enough support to immediately offset the problem of rising prices, but added that it was working to address it in the medium and long term.
“I understand that this contribution from the taxpayers – because that’s the taxpayers’ money – will not be enough to help cover the costs for everyone immediately,” he told ITV.
“Of course it will not work well enough in the short term. There is more we can do. But the most crucial thing is to ensure that we deal with prices in the medium and long term,” he explained.
Asked why welfare benefits were not rising in line with inflation, Johnson said his government should be careful not to cause further rise in inflation, which reached a 30-year high in March at 7 p.m. %.
“Although it is rightly pointed out that there is an inflationary risk and it is very serious, it may worsen and affect interest rates, the cost of borrowing for everyone,” said the British Prime Minister.
“And I’m sorry to say that, but we have to be prudent in our approach,” he added.
Johnson explained that the government is considering providing support to families who need to consume large amounts of electricity due to their medical needs.
British Finance Minister Risi Sunak said he would wait to see how energy prices would form in the coming months before deciding what further support would be needed when presenting the 2023 budget at the end of this year.
SOURCE: AMPE
Source: Capital
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