Iain Duncan Smith hands Rishi Sunak a blueprint on how to help Britons by lowering taxes
Iain Duncan Smith demands urgent action on cost of living crisis
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The former Conservative leader has urged the Government to introduce drastic changes to their fiscal policy in order to address the chronic cost of living crisis.
Mr Duncan Smith warned of a potential recession if the Government fails to take action against rising inflation rates.
The Tory MP suggested benefits for the most vulnerable households should be increased and tax burdens reduced in order to ease financial pressures on the UK’s poorest families.
Speaking to Sky News, he said: “I am calling today and we have published a paper at the Centre for Social Justice, which points out to the Government that it is time to increase the amount of money going to benefit recipients, the poorest in society because they have the least flexibility.”
Mr Duncan Smith continued: “We are facing a problem with a global spike in inflation, driven mostly by the problems about post-pandemic demand outstripping supply and also the war in Ukraine where oil and gas are less available, thus pushing prices up.
“The Bank of England is now raising interest rates.
“My concern is, first of all, that during the course of the spike we should make sure that we bring those benefits, that are relevant to those people who are in need, up to be able to afford, to be able to pay the bills that are going to be higher and increased as a result of this.
“The second thing is that we should worry very carefully about the fact that we may be going into recession.”
The former Tory leader suggested the UK could be heading for an economic recession if the current Conservative government does not address the matter more sternly.
He said: “That means that I don’t think you can raise interest rates to try and squeeze the spike domestically and, at the same time, have higher taxes.
“To bring taxation down, particularly for those on what I call the squeeze mill – people who are earning, but not earning a huge amount of money, they need to have their tax rates brought right down.
“That coupled together with a greater investment in those who are reliant on benefits will be the way to deal with this, to get us through this, so people don’t suffer unduly.”
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Mr Duncan Smith explained the pressure on UK financial policy had reached a peak as it is now vital the Government uses the funds available to introduce the correct economic measures.
“That’s the key bit, get the policy right to ensure the money goes in the right direction.”
The MP suggested that his plan was a fully costed and accessible economic policy for the Government.
“The Government can afford this because they’re had two years of much better growth in receipts than they expected.”
He added: “They have, already, what I call the head room to be able to do this.”
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Boris Johnson’s Government has come under increasing pressure to introduce emergency fiscal measures amid the cost of living crisis.
Mr Duncan Smith, who served as party leader between 2001 and 2003, echoed these calls: “I’m urgently asking them to do this, pretty much, now – not wait until the autumn to get it done.”
The Chancellor has repeatedly deflected calls to enact an emergency budget as costs across the UK continue to rocket.
In a recent address concerning the cost of living crisis, Rishi Sunak said: “There is no measure that any government could take, no laws we could pass, that can make these global forces disappear overnight.”
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