Gove dismisses talk of emergency budget to tackle rising costson May 11, 2022 at 9:07 am

Levelling Up Secretary Michael Gove has dismissed suggestions the government could hold an emergency budget to tackle rising costs.

He said ministers were looking at ways to help but talk of a budget was simply the media “chasing their own tails”.

A No 10 source said a dozen ideas to help ease the cost of living are being considered, including proposals like changing the frequency of MoTs.

Labour said the Queen’s Speech did not contain enough measures to help people.

Opposition MPs also criticised Mr Gove for jokingly using different accents in a BBC interview as he defended the government’s response to the cost of living crisis in the Queen’s Speech.

The speech – delivered this year by Prince Charles in the Queen’s absence – contained 38 bills and draft bills for the coming year.

Speaking to BBC Breakfast, shadow justice secretary Steve Reed said many were surprised the government’s plans for legislation in the coming months did not include more measures to help people out.

He said Chancellor Rishi Sunak should announce an emergency budget to implement a windfall tax on oil and gas companies, and “look again at the tax rises he imposed”.

On Tuesday, Prime Minister Boris Johnson told MPs during a debate on the Queen’s Speech that he and the chancellor would be “saying more” about ways to help people “in the days to come”.

But the Treasury played down the suggestion, while a No 10 source stressed there were no plans for an emergency budget and that it would be “wrong to build up expectations of a major moment”.

Liberal Democrat leader Sir Ed Davey said: “At one stage he [the PM] was sort of offering something but sources in the Treasury said he didn’t know what he was talking about – it appears chaotic.”

Mr Gove hit back that it was Sir Ed who was “chaotic” adding: “He doesn’t have a scooby.”

He said the prime minister was “making the point clearly that we are constantly looking at ideas in order to ensure we relieve the pressure on people facing incredibly tough times.”

“That doesn’t amount to an emergency budget… this is an example of some commentators chasing their own tails.”

He said suggestions there was a split between No 10 and the Treasury were “overinflated”.

The minister said the government had already introduced measures to reduce people’s council tax payments and the Queen’s Speech included proposals that would help minimise rent increases.

He argued that the opposition parties had failed to come up with any “whizz-bang” ideas.

The next Budget – when the chancellor outlines tax and spending plans – is not due until November.

In the meantime ministers are said to be focusing on what regulations can be tweaked, rather than making big changes to their tax and spending plans.

It comes as the National Institute for Economic and Social Research says that falling real incomes mean a further quarter of a million households face sliding into destitution this year – taking to one million the number which can’t afford essentials to eat, stay warm and keep clean.

The think tank has called for a boost to benefits of £25 a week, and a one-off payment of £250 for the poorer half of households.

Following his interview with BBC Breakfast, Mr Gove was criticised by opposition politicians for adopting a Liverpudlian and American accent as he denied there was a split between the Treasury and No 10 on the issue.

The Lib Dem’s Daisy Cooper said: “First, Sunak says it would be “silly” to help families with energy costs, now Gove is just doing silly voices….. What is going on?? How out of touch can you be?”

And Labour’s Lisa Nandy tweeted: “What is he doing!?

“Making jokes and using silly voices while families across the country are struggling to survive. This isn’t a game (or an Oxford Union debate!). People are having to choose between heating and eating.

“Take it seriously. Do your job.”