Rachael Maskell MP demands

Newly-appointed Chancellor Kwasi Kwarteng is expected to announce a raft of measures to help ease the cost of living crisis.

The new Truss government looks set to reduce various taxes as part of a package of measures in its aim to drive economic growth, but York Central’s Labour MP has other ideas.

Ms Maskell has written to the Chancellor with her solutions to curb the impact of price rises and to ‘build community resilience.’

The MP says research has shown that, even after the Government’s energy measures, families on means tested benefits still face a £450 gap between spiralling costs and government support. 

Local community groups, that provide support to vulnerable people across the city, have told Ms Maskell they are already struggling to meet increased demand and are very concerned about the coming months.

PM Lizz Truss (Image: PM Lizz Truss)

Ms Maskell's five-point plan includes:

• Household Support Booster Fund – to provide additional direct support for the poorest families to stop them falling into destitution

• Warm Bank Support Fund –to enable for charities & community groups to provide spaces for people to keep warm & stay connected

• Emergency Food Bank Support Fund –to stop Foodbanks running out of food in face of 63% rise in demand & enable them to create warm spaces across the city

• Winter Schools Support Package – to enable schools to offer every child hot meals and warm spaces to keep them healthy & stop them falling behind, and to provide more childcare for families

• Business Support Guarantee – provide guarantees to businesses beyond the next 6-months & targeted relief for sectors most badly hit by cost-of living-crisis

Rachael Maskell said: "Families and businesses are facing one of the toughest winters on record and a very bleak, uncertain future.  We urgently need a positive package of targeted support measures to help people, businesses and community groups through this crisis and towards a more positive future. 

"Without it the only certainty is that the most vulnerable people in our community are going to suffer and many of our businesses – that have fought hard through the pandemic – are going to struggle.”

The MP added: "How will the Chancellor respond to this crisis in tomorrow’s statement? The answer seems to be tax cuts. If this is it, the only thing trickling down on our poorest households this winter will be cold, hunger, and intolerable stress and pressure.  It’s not good enough for our people, our businesses, our services or the community, and is completely reckless.”   

Kwasi Kwarteng (Image: Newsquest)

Expected measures include scrapping green levies on energy bills, something the Prime Minister has talked about in recent weeks.

An increase in Corporation Tax, which firms pay on their profits, is not not expected to go ahead.

Income tax is also expected to be cut by 1p in the pound, to 19p.

A recent rise in National Insurance is also expected to be reserved.

Changes to Universal Credit have also been suggested to help people increase their income with part-time jobs.

Ending a cap on bankers’ bonuses is another measure, Prime Minister Truss favours to help create a “growing economy.”

The time of tomorrow’s mini-budget has yet to be announced.