Liz Truss has said the creation of more “high-paid jobs” will get Britain through the cost of living crisis, as she resisted calls to impose a windfall tax on the oil and gas giants.
The foreign secretary said an emergency levy would make it “difficult to attract future investment” – and suggested that better-paid jobs would help struggling Britons cope with soaring bills.
“The important thing is getting economic growth up, getting those high-paid jobs into our country, attracting the investment – that is what we need to do to sustain ourselves through a very severe economic storm,” Ms Truss told the BBC.
It follows a suggestion by fellow Tory minister Rachel Maclean that people struggling with soaring bills and prices should consider taking on more hours or move to a better job.
Asked about those comments, Ms Truss said: “It’s not about how many hours people are working, it’s about making sure there are enough of those high-paid jobs.”
Speaking as inflation hit 9 per cent, the highest level in 40 years, Ms Truss acknowledged that Britain faced a “very, very serious economic situation”.
But the senior minister blamed the problem on “global headwinds” – citing the Covid pandemic and the war in Ukraine for rising prices.
She suggested chancellor Rishi Sunak was looking at further support for struggling families, but insisted that a windfall tax on the fossil fuel giants was a bad idea.
“My view is lower taxes are the best way to attract more investment, to get the businesses into this country that can create these high-paid jobs – which is what we need to face down these global headwinds,” she told Sky News.
Asked about the prospect of a recession on the horizon, Ms Truss said: “Nobody can predict whether or not there will be economic problems.”
She added: “The best thing the government can do is attract investment, keep people in work. I know the chancellor is looking at further measures we can take.”
Cost of living: how to get help
The cost of living crisis has touched every corner of the UK, pushing families to the brink with rising food and fuel prices.
- The Independent has asked experts to explain small ways you can stretch your money, including managing debt and obtaining items for free.
- If you need to access a food bank, find your local council’s website using gov.uk and then use the local authority’s site to locate your nearest centre. The Trussell Trust, which runs many foodbanks, has a similar tool.
- Citizens Advice provides free help to people in need. The organisation can help you find grants or benefits, or advise on rent, debt and budgeting.
- If you are experiencing feelings of distress and isolation, or are struggling to cope, The Samaritans offers support; you can speak to someone for free over the phone, in confidence, on 116 123 (UK and ROI), email jo@samaritans.org, or visit the Samaritans website to find details of your nearest branch.
It come as Tory MPs voted against a Labour move to amend the Queen’s Speech and introduce windfall tax on the soaring profits of oil and gas companies to help provide relief to the public. It was rejected on Tuesday night by 310 votes to 248.
Labour will challenge Tory MPs to back a vote on Wednesday pressuring Boris Johnson and Mr Sunak to commit to an emergency budget addressing the cost-of-living crisis.
Shadow chancellor Rachel Reeves said emergency measures were needed now “because it is clear that the actions taken to date by the government did not meet the scale of the challenge”.
She told BBC Breakfast people were making “terrible sacrifices”, saying: “Pensioners who have not had the heating on because they can’t afford it, mums who are skipping meals to ensure that their children can eat.”
“This should not be happening in Britain in the second decade of the 21st century,” said Ms Reeves.
