INFLATION has soared to nine per cent, triggering calls for “now or never” tax cuts.
Prices are rising at the fastest for 40 years.
But the Cabinet is said to be split over how to help.
Foreign Secretary Liz Truss went public yesterday with a call for “a low tax economy” to stimulate growth.
But Chancellor Rishi Sunak warned there was no magic bullet to fix inflation.
He told the CBI last night: “There is no measure any government could take, that can make these global forces disappear overnight.
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“The next few months will be tough. But where we can act, we will.”
He confirmed there would be tax cuts in the next Budget this autumn but only for big business.
Trending In The News understands they will include increasing allowances for research and development and tax breaks on investments to create jobs.
However Tory backbencher Jake Berry insisted: “It’s now or never and I think now is the time to act.”
He urged Mr Sunak to consider a “serious” cut in the 20 per cent VAT rate.
And he called for a return of the Universal Credit uplift of £20 a week.
Ministers are privately urging the PM to hit energy firms to help cut council tax.
Earlier this week Tory MPs were ordered to vote against a windfall tax on North Sea oil and gas profits.
Government sources say the Chancellor’s team had “pushed hard” to abstain on the vote.
But they were overruled by No10 who say the idea is “un-conservative”.
Yesterday Boris Johnson told the Commons: “I am going to look at all sensible measures in the future.”
BoJo’s adviser Lord Moylan said the Bank of England should be nationalised as its “independence in managing monetary policy has failed”.
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The Institute of Economic Affairs also said the Bank could do more and slammed Governor Andrew Bailey for “unhelpful” pay advice.
Labour’s Sir Keir Starmer said that Boris was “choosing to let people struggle when they don’t need to”.
