Rishi Sunak is under increasing pressure to take action

Rishi Sunak is under increasing pressure to take action on rising living costs.

Business groups and unions believe the chancellor must act immediately rather than wait for the Autumn Budget to assist people cope with rising living costs.

According to the Confederation of British Industry: “There are some options for what you do now and in the future. You must immediately assist the most vulnerable.”

Rishi Sunak has stated that the government will act where it can, but that cutting prices for people will be difficult.

As electricity, food, and petrol prices rise, UK inflation has reached a 40-year high of 9%.

On Wednesday evening, Mr Sunak told the annual CBI dinner that the government was “willing to do more” to help households.

Proposals to accelerate benefit and pension increases

Sunak predicts a difficult few months as inflation climbs.

Royal Mail has warned that it would raise prices again.

However, Tony Danker, told that it was critical to act now.

“Helping people with their heating and food expenditures will not fuel inflation, and you must promote business investment right now. That will not overheat the economy, but it will ensure that any downturns in our fortunes are brief and shallow since growth is on the way.”

In April, the inflation rate reached its highest level since 1982, while recent data indicated the UK GDP contracted in March, stoking fears of a recession.

Kate Bell of the TUC encouraged the government to increase state benefits now rather than next April, dismissing allegations that IT concerns prohibited it from doing so.

“What I think we witnessed during the coronavirus crisis is that when the economy is in difficulties or we’re facing an emergency, we do need to protect people and that is the best approach to defend the economy,” Ms Bell said.