Cabinet ministers are divided over proposals to alleviate the crisis with the cost of living at no cost to the government, which include calls for the abolition of green levies and a plan to reduce MOT test intervals from one to two years.
Chancellor Rishi Sunak made it clear to ministers during a brainstorming session that there was no money available to fund schemes to help households in difficulty.
There were clashes around the table as Police Secretary Keith Malthaus called for tax cuts to compensate for rising prices, and Business Secretary Quasi Quartent opposed Jacob Rees-Mogh’s demands to lift taxes that add £ 150 a year to the average. energy bill.
As the Conservatives took the blow on the eve of the local elections due to the impact of rising inflation, Boris Johnson called on each minister to present ideas to help return money to the purses and wallets of voters.
He is said to be particularly keen to reduce childcare costs, where prices have risen by a third in the last decade from around £ 102 in 2012 to £ 137 now for the average weekly part-time childcare place. under two years.
The ideas presented at the meeting are believed to include a proposal launched for the first time last autumn, but not yet accepted, to increase the maximum number of children that can be cared for by anyone caring for a child.
Meanwhile, Transport Minister Grant Shaps is believed to have proposed increasing the length of time between roadworthiness tests from one to two years, effectively halving their costs.
Another idea under consideration is to reduce tariffs on imports of foods that cannot be grown in the UK, such as rice.
The most promising ideas will be selected for a possible meeting over the next few weeks, chaired by the prime minister and attended by his deputy, Dominic Raab, Mr Sunak, and the Chancellor of Lancaster, Steve Barkley.
But the cost of living package under discussion will not be ready in time to be included in the Queen’s speech on May 10, when Mr Johnson will set out his legislative plans for next year.
Speaking to his cabinet, Mr Johnson acknowledged that the British were facing “real pressure”, but blamed external factors such as “crazy madness” of Russian President Vladimir Putin in Ukraine and the recent blockade of Covid in China.
Labor leader Sir Keir Starmer said Britain needed “an urgent budget, not a cabinet meeting”.
“The cost of living crisis has been on our faces for six months, and it’s a real problem for people struggling with their bills – and a cabinet meeting this morning won’t change any of that,” he said.
Mr Johnson’s spokesman declined to discuss individual proposals, saying only to reporters that “there is a need to balance the amount of regulation and bureaucracy so that it is enough to ensure the protection of public safety, but not to burdens society unnecessarily. “
But the National Day Care Association (NDNA) said “confusion” with the adult / child ratio – which varies with age, from 1: 3 for children under two to at least 1: 8 for over three – is “short-sighted.” “And will not achieve the desired result.
NDNA Chief Executive Officer Purnima Tanuku said: “We run the risk of putting additional pressure on the overworked workforce while undermining efforts to give children the best start in life.
After years of underfunding by the government for kindergartens, about 95% of crèches say they do not cover their costs, and 85% work at a loss or are simply unprofitable, she said.
“We want to see a government committed to equalizing opportunities for all children by investing in their early years, where we know this has the greatest impact on their chances of survival,” Ms. Tanuku said. “Instead, we seem to be talking about a race to the bottom that will not help children or families, but will worsen the labor crisis we have in the early years.”
Labor education spokeswoman Bridget Phillipson said the government had made high-quality childcare “increasingly inaccessible and inaccessible”.
“Now the government’s decision is to reduce quality without making a difference in availability,” she said. “The Labor Recovery Plan will invest in early childhood places for children on free school meals and increase access to pre- and post-school clubs.
“The chancellor has failed to provide security for families. The Conservative government must set an emergency budget to tackle the cost of living crisis – and support Labor’s call for money back in the pockets of working people.
Liberal Democrat education spokesman Munira Wilson said Mr Johnson had failed to respond to the “eye-catching” increase in the cost of raising children.
She added: “Boris Johnson’s new plan is not to solve this problem directly, but instead to cut corners and endanger his children. Their safety must be our number one priority, not a cost-cutting measure.
“The government needs to address the crippling costs of childcare so that families receive the support they need and can afford to return to work.
AA Cousins, head of road policy at AA, told The Independent that Mr Shapps’ idea of less frequent MOT tests may not be popular with drivers after a survey of the automotive organization found significant support. for the existing one-year interval.
As the cost of the MOT test is limited to £ 54.85 and some providers offer them for a significantly lower price, drivers are unlikely to feel a significant financial boost from the offer, he said.
And he said: “In our survey, people supported the annual MOTs on the basis that it ensures that people keep their cars safe to use on the road. I think people prefer to feel relieved at gas stations than to help them with other driving costs.
“Waiting longer for your car’s MOT runs the risk that the problems that would be raised have another 12 months to worsen and potentially lead to higher costs for the next test or difficulty when you’re on the road.”
Following their clash in the cabinet, Mr Quarteng turned to Mr Rees-Mogg on Twitter, posting a graph showing that new solar and wind energy is now four times cheaper than gas production in the UK.
“The cheaper and cleaner energy we generate at home, the less we will be exposed to expensive gas prices,” he said.
A source close to Mr Kwarteng declined to give details of the cabinet discussion, but said: “I don’t think anyone will be surprised that Kwasi has defended generating cheap and clean energy in the UK, not burning foreign gas. .
“Green energy is the cure for high prices, not the cause.”
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