The cabinet is discussing ways to reduce the burden on families and people struggling with the cost of living, in particular by making “non-fiscal” proposals that do not involve tax increases.
These include ideas suggested by Boris Johnson and others that have already been circulated.
Easing health and safety rules in kindergartens
The proposal is said to have come from the Prime Minister, who reportedly proposed reducing the legal requirements in England, which stipulate that there must be at least one staff member for every three children in groups aged two and over. a little.
Pros: Many crèches have been overburdened with staff and the need to attract agency workers. Parents and guardians had to take into account the increased fees.
Cons: Caring for a group of young children can be a challenging, perhaps terrifying task for any number of caregivers. The idea helps only parents with children under three years. The coalition government has abandoned plans to reduce the child-to-staff ratio.
Relieve the frequency of MOTs
Transport Secretary Grant Shaps is said to have proposed reducing the need for vehicles to have an annual roadworthiness test. Currently, maintenance must be performed on any vehicle that is three years old or older.
Pros: Avoiding the need to renew a MOT certificate can save riders up to £ 54.85 for a car and £ 29.65 for a standard motorcycle.
Cons: The idea is very good in practice, until a car crashes and someone dies. AA also opposes that it would still lead to increased repair bills.
Elimination of tariffs on food produced exclusively abroad
Food from abroad, such as rice and oranges, would be among those that could become cheaper in supermarkets if tariffs were removed.
Pros: This move can save users under pressure if cost savings are transferred directly. Unlike other ideas, savings can be felt everywhere, including by lower-income families who have reduced supplies, which many take for granted.
Cons: Leverage in Britain’s trade talks will be abolished, which is why the idea is reportedly facing opposition from International Trade Minister Anne-Marie Trevelyan.
Raising green levies on bills
Fees used to fund renewable energy schemes are opposed by Tory traffickers and right-wing sections, although Business Secretary Kwasi Quarteng holds the line.
Pros: Taxes add £ 153 to the average energy bill. Employees are reportedly investigating whether the levies can be phased out or simply lifted by the fall, when bills are expected to rise.
Cons: Johnson has already said that green, sustainable electricity can help reduce bills.
Reducing bureaucracy to allow more “parallel imports” from abroad at lower prices
“Gray goods” are branded products that are imported into the market and sold without the consent of the trademark owner. This is not illegal, but sellers must apply for a license in what can be a bureaucratic process.
Pros: The cost of branded clothing and electrical goods, such as smartphones, can be reduced by cutting red tape to allow more “parallel imports”.
Cons: Not an idea to help the most needy families struggling to make a living, let alone buying consumer goods.
Targeted campaign to inform the public about unwanted benefits
It is estimated that around £ 15 billion in compensation remains unclaimed each year. This includes 1.3 million families who do not accept an offer of up to £ 2,000 a year for parenting costs. Other savings cover those living alone who do not know that they may be entitled to a municipal tax rebate for one person – calculated assuming that two adults live in a property – and receive a 25% rebate on their account.
Pros: A campaign to inform the general public about unwanted benefits can be a relatively inexpensive way to tackle the cost of living crisis.
Disadvantages: The view of resources invested in a public relations campaign will not benefit lower-income families who are barely surviving, even though they are making the most of all the benefits to which they are already entitled. Experts also describe as “schematic” government data supporting the assumption that much of the support remains unsolicited.
… And although it is a fiscal measure, reduce taxes
Keith Malthouse, the police minister, and Jacob Rees-Mogg, the efficiency minister, were reportedly among the most vocal of those who suggested tax cuts remained the best way to help troubled members of society. .
Pros: Wriggle room exists if the figures published this week are something that needs to be done. HMRC collected 718.2 billion pounds in taxes in the last fiscal year, an increase of almost a quarter from the previous year, while national insurance, capital gains and inheritance tax reached record levels.
Cons: Despite pressure from colleagues, Chancellor Rishi Sunak is said to be particularly aware of inflation risks; during cabinet discussions № 10, he said he “emphasizes the importance of not fueling further rising inflation and stressed that the UK is currently spending £ 80 billion to service our debt”. Tax cuts would also leave a hole in spending plans.
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