The government must “take action” to support those hit hardest by price rises, a cross party report urged, warning that the cost of living pressures combined with the impact of Russian sanctions on the UK economy would be felt “particularly” by lower income households.
In its report, published on Wednesday, the parliamentary treasury committee welcomed the “stringent economic sanctions” imposed by the UK and its allies against Vladimir Putin’s regime, adding that energy sanctions had already inflicted “significant damage to the Russian economy”.
However, the committee warned that sanctions would come at a “cost to the UK economy”, which would exacerbate the higher cost of living pressures already affecting households. As the government progresses with sanctions, “it must take further action to support UK households, in particular those on lower incomes”, the report said.
“This war will also have economic consequences here at home, and while these are worth bearing to support Ukraine in their fight for freedom, it’s becoming increasingly clear that the government will need to support those who are hit hardest by price rises,” argued Mel Stride, committee chair.
The Conservative MP for Central Devon added: “The public finances are in a stronger position than anticipated, and the chancellor should use this additional fiscal firepower to bring forward support for those on the lowest incomes.”
Source: Financial Times
