FINANCE Ministers across the UK met in Cardiff yesterday, with how to
support people and businesses with soaring bills dominating discussion. Following the meeting, the Northern Irish, Scottish and Welsh Ministers
visited South Point Primary School in Rhoose – Wales’ first net zero
school.
The price of food, fuel, energy, clothes, travel costs and rent continue
to go up as inflation rises. And OFGEM has warned energy bills are set
to rise again by around £800 per year in October. This is against the
backdrop of increasing concerns about the impact of the crisis on
individuals’ health and wellbeing.
The UK’s Finance Ministers discussed what more can be done to help
people cope with this crisis at a joint Committee which considers fiscal
and economic matters affecting the UK.
Ministers also considered concerns about EU replacement funding, as well
as Covid recovery and the move towards net zero. The need to invest in
renewables to ensure energy security was discussed, along with how to
make sure people are able to meet the costs of their energy needs now
and in the future.
Rebecca Evans, Minister for Finance and Local Government, said:
“The UK Government needs to use the levers at its disposal to take
further urgent steps to target gaps in support, particularly to help
lower income households and families with children, and to boost
businesses who are also feeling the impacts of rising costs.
“Removing all social and environmental policy costs from household
energy bills, for example, and introducing a lower price cap for lower
income households, would help them to meet the costs of their energy
needs now and in the future.
“Our budget is now worth at least £600m less than when we made our
spending plans last year. We call on the Chancellor to increase it in
line with inflation so that we can support NHS recovery following the
pandemic, invest in jobs and growth, and boost our cost of living
response.”
Commenting after the meeting, the Irish Finance Minister, Conor Murphy said:
“The collective message to Treasury today was clear – more must be
done to help households and businesses facing an unprecedented cost of
living crisis. While Treasury has announced assistance for citizens
they must now look at supporting businesses which are also facing
increased fuel and energy costs against a backdrop of trying to
recover from the impact of the Covid-19 pandemic. Along with the Welsh
and Scottish Finance Ministers I impressed upon the Chief Secretary to
the Treasury the need for further measures to be taken. I once again
called on Treasury to reduce VAT on energy bills.
“I also reiterated to the Chief Secretary to the Treasury the need
to ensure the citizens of the North are not disadvantaged when it
comes to the £400 Energy Bill Support Scheme payment because of the
absence of an Executive. We have committed to continue the engagement
between my Department and Treasury to ensure a solution is found to
deliver support locally.”
Scotland’s Cabinet Secretary for Finance & Economy Kate Forbes added:
“As we continue our economic recovery from the pandemic and the
ongoing cost of living crisis, we must firmly focus government and
public sector resources on delivering clear priorities, including
tackling child poverty, growing the economy and meeting our climate
change targets.
“According to the Scottish Fiscal Commission (SFC), the overall
Scottish Budget fell by 5.2% in real terms between 2021-22 and 2022-23
with a further 1% real-terms reduction forecast sustained until
2025-26.
“While we are doing all we can with the finite financial resources
and limited powers currently available to us to tackle the rising cost
of living, the UK Government needs to use the powers at their disposal
to help those most in need, including those from low income households
and families with children as well as businesses.”
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