LBC: Sunak slated as Treasury using outdated policy failing Brits
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Rishi Sunak has come under fire for his focus on an outdated policy practice designed to address the economic crisis of the 1970s. The Chancellor has faced increased pressure to introduce new measures to tackle inflation and rising costs across the nation. Director of Tax Research UK, Richard Murphy slammed the Chancellor’s ineffective policy approach as the cost of living crisis continues to financially burden households across the country.
Speaking to LBC, the professor said: “The Government at the moment is trying to tackle inflation by increasing interest rates, that only works if the inflation is caused by people having too much money in their pockets to spend.”
Mr Murphy continued: “They haven’t, we know that the problem we have is the exact opposite.
“Prices have gone up because of profiteering.”
The Professor reluctantly praised the Labour party’s criticism of the Tory economic policy.
“In this sense, the Labour party is right, I’m not going to endorse everything they’re saying, but they’re right.”
Mr Murphy argued the Conservative Ministers had failed to appropriately identify what had caused soaring inflation in the UK.
He said: “Companies are forcing up prices because there are shortages caused by war, caused by Covid, caused by the price increases that follow that and also, let’s be honest, Brexit too in the case of the UK which is why we’re worse than other countries.”
The economist suggested the influence of Brexit has exasperated economic concerns in the UK in comparison to other nations across Europe.
“Those are causing the shortages and companies are exploiting them by putting prices up.”
Read more: Peston: Government warned of ‘civil unrest’ if cost of living crisis
“Therefore, the policy that the Government is pursuing with the Bank of England is not going to work,” claimed Mr Murphy.
He added: “It was designed for the inflation of the 1970s and that’s not what we’ve got now.
“They, first of all, have to change their tack and admit we’ve got a different type of inflation and then tackle that one, that requires a very different approach.
“They should actually be taking measures to cut prices at this moment because those prices could be cut by the Government.”
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In a speech addressing the cost of living crisis, the Chancellor said: “Our role in government is to help cut costs for families. I cannot pretend this will be easy.”
He continued: “There is no measure that any government could take, no law we could pass, that can make these global forces disappear overnight.”
Mr Sunak affirmed the Government was already taking significant steps to address the economic issues and protect those most vulnerable to financial concerns.
The Chancellor said: “So our plan will deal with the immediate impacts of inflation. Cutting costs for families, cutting the deficit and we are also growing the economy.”
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