Emergency budget needed to tackle cost-of-living ‘bombshell’ – Lib Dems

Families will be hit with a £1,300 “bombshell” from a combination of tax hikes and inflation, the Liberal Democrats have claimed.

The party urged the UK Government to introduce an emergency budget to tackle the soaring cost of living.

The latest figures on Wednesday from the Office for National Statistics (ONS) show that the rate of inflation rose again in May, remaining at 40-year highs.

The rate of consumer prices index (CPI) inflation rose from 9% in April to 9.1% in May, according to the ONS data.

Christine Jardine, Liberal Democrat Treasury spokeswoman, said: “Rishi Sunak and the Conservatives are standing by while millions of people suffer from eye-watering levels of inflation.

“How do they think ordinary families are going to find this extra money?”

The Liberal Democrats said that the hit to families from soaring food and fuel prices is being nearly doubled by a £640 increase in national insurance, income tax and VAT this year.

The party claimed that families are paying an extra £425 on food, drink and clothing than a year ago, while an additional £310 is needed to refill a car.

The Lib Dems are urging the Chancellor to implement an emergency budget that would cut VAT to 17.5%.

The party is also calling for a rural fuel duty cut of 10p a litre, as well as the doubling of the current Rural Fuel Duty Relief scheme and expanding it to more areas.

“Drivers in rural communities are bearing the brunt of devastating fuel price hikes, but the Conservatives are failing to lift a finger to help,” Ms Jardine said.

“This Government has hiked taxes at every chance, refusing to slash them to help with the cost-of-living emergency. Even when we know slashing VAT is a sure-fire way to help families while keeping inflation under control.

“The Chancellor, his Prime Minister and his colleagues continue to fail the British people when they need support, if they had any sense or any soul they would implement an emergency budget to cut taxes.”