MINISTERS must be bolder in tackling the cost-of-living crisis, TUC general secretary Paul Nowak warned today.
He was speaking as Chancellor Rachel Reeves unveiled a package of measures to ease the impact of spiralling prices on families, including by cutting VAT on summer attractions.
She also announced aid for the chemical and ceramic industries, with the package to be funded, at least in part, by raising more tax from global oil firms.
But Ms Reeves’s measures, aimed at dealing with the economic impact of the Trump-Netanyahu war against Iran, did not include any help for families struggling with energy bills, a key driver of the crisis.
Responding to the plans, Mr Nowak said: “Any practical steps to help families with the cost-of-living crisis are a good thing.
“Unions have long campaigned for upgrading critical industries like chemicals and ceramics and increasing mileage rates for workers. These measures will make a real difference to people up and down the country.
“But we’ve barely begun to experience the economic fallout of the Iran war — and the threat to living standards is going to grow as the war drags on.
“With the new energy price cap set to be announced next week, the government will need to be bolder to shield workers and households from Trump’s illegal war.”
The End Fuel Poverty Coalition said: “Energy bills are forecast to rise 8 per cent year-on-year from July, with gas unit rates up 13 per cent.
“The Chancellor’s complacency on energy bills is shocking.
“Where’s the plan for households still in debt from five winters of high bills, or the millions not even covered by the price cap?
“The government must act now to break the link between electricity prices and volatile gas markets, and accelerate the shift to homegrown renewables.”
The Chancellor cut to 5 per cent the rate of VAT on theme parks, soft-play centres, zoos, museums, children’s theatre and cinema as well as children’s meals in restaurants to help families afford days out during the summer holidays.
Bus travel is to be made free for under-16s during August as well.
The move was welcomed by the Federation of Small Businesses, whose chair Tina McKenzie, said: “A VAT cut should help put bums on seats and bring life into our town centres this summer.”
And Ms Reeves raised the tax-free mileage rate for workers claiming back the cost of driving, helping “those who need to drive for work, from care workers to plumbers,” she said.
Renewing her tussle over prices with the big supermarkets, having backed down in the face of bosses’ rage over a proposal for voluntary price curbs, Ms Reeves said she would suspend import duty on a range of foodstuffs, including chocolate and biscuits.
“Today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets. And I am clear that I expect supermarkets to pass these savings on in full to their customers,” she said.
Badging all this as Great British Summer Savings, the Chancellor — unlikely to survive a change in Labour leadership in post — announced changes to the tax regime affecting the British operations of international oil monopolies.
“We must ensure that those who benefit from increased prices and volatility pay their fair share,” Ms Reeves said.
“Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no corporation tax on their UK energy trading profits.
“Today we are putting an end to that practice,” she said, adding that several hundred million pounds could be raised thereby.
Ms Reeves confirmed the announcement made by Prime Minister Sir Keir Starmer this week that fuel duty increases scheduled for September would now not take place this year.
She unveiled a £350 million fund to assist “strategically important producers” in the chemical industry, as well as a £120 million package to support the ceramics industry with efficiency and energy costs.
This was welcomed by Stoke North MP David Williams, who told the Commons that he had received a message from his mother, who “worked in the pot banks of Tunstall and Burslem” reading simply “nice one, duck.”



