Boris Johnson rules out immediate cost-of-living measureson August 8, 2022 at 6:43 pm

No 10 has ruled out Boris Johnson introducing immediate measures to help people with rising energy costs.

It comes as CBI director-general Tony Danker called for “all hands to the pump”, echoing ex-Labour PM Gordon Brown’s call for swift intervention in the cost of living crisis.

And Nicola Sturgeon, Scotland’s first minister, has called for an urgent meeting with the devolved governments.

Downing Street said it recognised the public were facing “challenging times”.

However, Mr Johnson’s spokesman argued it would be up to his successor to make any decisions on further help.

Mr Johnson is due to leave office in early September, and No 10 said “by convention it is not for this prime minister to make major fiscal interventions during this period”.

Earlier this year, the government announced a £15bn package of support to ease the cost of living crisis.

This included giving households a £400 discount on energy bills and £650 for the poorest households to help with wider living costs.

However, the government has come under pressure to do more, following worsening economic warnings.

Last week, the Bank of England forecast that the UK was heading into a recession, with inflation set to hit 13%.

Meanwhile, the energy price cap will go up in October, with industry analysts estimating average domestic energy bills could hit more than £3,600 a year.

CBI head Tony Danker said the prime minister and the candidates for the Tory leadership, Rishi Sunak and Liz Truss, “should come together to agree a common pledge to support people and help quell fears”.

“The economic situation people and businesses are facing requires all hands to the pump this summer,” he said.

“We simply cannot afford a summer of government inactivity while the leadership contest plays out followed by a slow start from a new prime minister and cabinet.”

In a press release, the CBI said the prime minister should direct the civil service to draw up options on helping the most vulnerable people – and that these options should be made available to both leadership candidates.

The organisation – which represents British businesses – also said Mr Johnson, Mr Sunak and Ms Truss should agree “a way forward to support people and businesses with energy bills” ahead of 26 August, when Ofgem is due to announce the next energy price cap.

Elsewhere, Scotland’s First Minister Nicola Sturgeon has called for an emergency meeting with Mr Johnson and the leaders of devolved governments, to agree steps to help people.

In a letter to Mr Johnson, she said the SNP-led government was “committed to doing all we can” but added: “We cannot respond on the scale required without action by your government.”

Writing in the Daily Record, Mr Brown – who was prime minister between 2007 and 2010 – said the UK faced “a financial timebomb” and urged Mr Johnson, Mr Sunak and Ms Truss to agree “an immediate Budget to prevent a winter heating catastrophe”.

He also said Cobra, the government’s emergency response committee, should be in “permanent session to deal with the coming fuel and energy crisis”.

Speaking to the BBC’s World This Weekend programme on Sunday, Mr Brown said there was “a vacuum” in government because “the prime minister is on holiday, the chancellor is on holiday, the two leadership candidates for prime minister are on the campaign trail.”

Asked if Mr Johnson – who has returned from a holiday in Slovenia – would summon a meeting of Cobra, No 10 said it would be up to Mr Johnson’s successor to make any decisions on further support for households.

“By convention it is not for this prime minister to make major fiscal interventions during this period. It will be for a future prime minister,” he said.

The spokesman also said there were no plans to recall Parliament, but that Mr Johnson and his Chancellor Nadhim Zahawi are meeting this week to discuss progress on the support measures already announced.

Meanwhile, the two candidates to takeover the leadership have been criticising each others plans to address mounting living costs.

Mr Sunak has warned that the plans of his rival Ms Truss “won’t touch the sides”.

Supporters of Ms Truss say her proposed tax cuts would help people, but did not rule out offering further support.