Rishi Sunak’s cost of living gamble
Spectator (UK)Sep 09, 2021
The Facts
Regulator Ofgem has annouced a rise in the price cap on wholesale gas prices in light of soaring fuel costs.
Roughly 22 million households are expected to pay £693 more per year on energy bills from April.
The Spin
Right narrative
Sunak's measures are not truly conservative, and are inadequate. Plans to increase national insurance, lend to companies and expand state intervention (plus his resistance to cutting green levies) puts the economy and the British people at risk.
Left narrative
The Chancellor is loading costs onto taxpayers with a buy now, pay later approach. The opposition under Starmer would ease living costs by taxing those who can afford it - the oil and gas companies profiteering from soaring demand.
Cynical narrative
Sunak is being politically strategic. He wants to avoid excessive spending and raise taxes now in order to be able to decrease them near the end of parliament, in the hopes of garnering support ahead of the general elections.
