Boris Johnson and Rishi Sunak have told Brits the government is ‘on your side’ when it comes to the spiralling cost-of-living crisis.
But with food and petrol prices reaching fresh highs, plunging millions into financial distress, some might find their assurances hard to stomach.
In an op-ed for the Sun on Sunday, the prime minister and chancellor outlined what they are calling ‘the single biggest tax cut in a decade’, worth £6 billion.
Their measures include ‘a council tax rebate, a cut in fuel duty, at least £400 for every household to help with energy bills and at least £1,200 for the eight million most vulnerable households’.
Mr Johnson and Mr Sunak said that when the National Insurance (NI) threshold rises this Wednesday from £9,880 to £12,570, it will save up to £330 a year for 30 million people.
They claim the change will lift 2.2 million people out of paying any NI or income tax on their earnings.
‘We know it’s tough but we want you to know that this government is on your side,’ the two wrote. ‘And while it will be tough, we will get through this.
‘That’s why we are helping households across the country with £37 billion of financial support.’
They added: ‘So, whether you work in a factory, or are a care worker, a hairdresser or a graphic designer, this week’s tax cut is likely to make you and your family better off.’
Mr Johnson and Mr Sunak blamed the cost-of-living crisis with the extra demand caused by global industry roaring back into life post-Covid and the war in Ukraine.
This comes after the Tory leader’s denial that his government is ‘complacent’ about spiralling inflation and said the ‘cost of freedom’ is ‘always worth paying’.
Speaking at a press conference at the close of the Nato summit in Madrid on Thursday, he said the ‘very, very tight labour market’ and difficult ‘balance of our energy mix’ add to inflationary pressures.
There has not yet been a response from Labour about the two politician’s claims in the Sun but the opposition has previously criticised Mr Sunak’s response to cost of living.
As part of his mini budget, he announced an NI increase by 1.25% (in percentage points), which came into force on April 6 to theoretically help fund the stretched NHS.
But the rates are set to go down next week when the repayment threshold increases and those on lower incomes are set to make some welcome savings.
People can find out exactly what this ‘tax break’ will mean for them by visiting the government’s Cost of Living page on gov.uk and using the available calculator.
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