This week Chancellor of the Exchequer, Rishi Sunak, announced the Government’s latest package of measures designed to help ease the burden of the cost-of-living crisis on the country’s most vulnerable. Helping to tackle rising gas, electric and food prices, Sunak has pledged to support and guide the United Kingdom through this crisis by taking a number of economically challenging decisions. While this package of economic measures will be of great help to those in need, we cannot be tempted to stop whilst we are ahead, as the next general election will be won or lost on how we tackle this cost of living crisis.
The statistics on the current cost of living crisis can be worrying for many, in particular those who already struggle to afford day to day costs and bills. As it stands at the moment, inflation (calculated as the average change in the price of typical goods and services purchased by UK households over 12 months) is forecast by the Bank of England to peak at 10.2% during the last quarter of 2022. One of the major drives in this large jump in inflation is the rapidly increasing cost of energy, particularly in gas, which – as a result of the Russian Invasion of Ukraine – increased tenfold in price compared to last year.
This is particularly challenging for the Black, Asian, and Minority Ethnic community in Scotland. As it currently stands, the unemployment rate for ethnic minority individuals is double that of the unemployment rate for white individuals. Moreover, just under 40% of those who earn below the average income are from minority ethnic groups, which is vastly disproportionate to the fact that ethnic minority groups make up just 4% of the Scottish population. As such, when we discuss those who are the hardest hit by this cost of living crisis, we need to remember that a large percentage of them will be members of the BAME community.
In a statement to the House of Commons, Chancellor Rishi Sunak Said:
“The high inflation we are experiencing now is causing acute distress for the people of this country. I know they are worried; I know people are struggling… But this government will never stop trying to help people, to fix problems where we can, to do what is right – as we did throughout the pandemic. We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported. This government will not sit idly by whilst there is a risk that some in our country might be set so far back… they might never recover. This is simply unacceptable. I will never allow that happen. And I want to reassure everybody – we will get through this.”
The measures brought forward by the Chancellor of the Exchequer are designed to address the cost of living crisis for every household in Britain, including the most vulnerable. The UK Government will provide every household in the country £400 in October to assist with expected rise in energy bills in winter, the poorest households in the country will also receive an additional one-off payment of £650 in two lump sums in July and then in the autumn. The cost of these measures will be met by a one off 25% windfall tax on oil and gas firm’s profits. While the Conservative Party remains the party of low tax, we are also the party of economic responsibility, and it would be irresponsible to allow oil and gas companies profits to continue soaring whilst the poorest in our country struggle to make ends meet.
These policies are exactly the measures that are appropriate and proportionate to handle this cost of living crisis. While they do not necessarily fit with the pragmatic, low tax, small government values of the Conservative Party, we as a party need to prepare to get a little uncomfortable with certain policies that need to be implemented to help mitigate this crisis. The next General Election will not be won or lost on Brexit, nor will it be won or lost on so-called “party-gate”, the next General Election will be won or lost based on our record of helping this country through one of the most challenging economic periods we have faced in decades.