Boris Johnson has promised more help with living costs “in the months ahead”, stepping back from his suggestion yesterday that he would announce new support measures within days.
The apparent climbdown came after Michael Gove denied there would be an emergency budget.
The levelling up secretary on Wednesday morning played down the prime minister’s statement to MPs the day before that he would say more about financial support “in the days to come”. The remark was “overinterpreted”, Mr Gove said.
Despite support for an emergency budget among opposition parties and some Conservative backbenchers, Mr Gove said the government would not take such a measure to tackle the cost of living crisis. He said ministers were working on their own policies that “will be announced by individual departments in due course”.
Mr Johnson on Tuesday told ministers to “go faster” and be “as creative as possible” in devising measures to help struggling households.
At a press conference in Finland on Wednesday, he said: “We will have the maximum energy, effort, ingenuity, to help the British people through them and everybody knows how tough it can be right now.
“But we’re going to get through just as we got through Covid.
“And you know all the money we’re already spending, there will be more of course, there will be more support in the months ahead as things continue to tough with the increase in the energy prices.”
The prime minister is seeking initiatives to reduce the financial squeeze without requiring new funding from the Treasury.
On Tuesday, while under fire for failing to use the Queen’s Speech to announce new support measures, Mr Johnson suggested he and chancellor Rishi Sunak would announce more “in the days to come”.
But the Treasury quickly shot down his suggestion of further “fiscal firepower”.
Later in the day, Mr Johnson chaired a meeting of the Domestic and Economic (Strategy) Committee with senior ministers, including Mr Sunak.
Mr Johnson‘s official spokesman said: “The prime minister urged ministers to go faster and be as creative as possible in ensuring the government is doing everything on this important issue.”
No 10 said the chancellor had already set out “substantial support” in the form of “fiscal measures”, but the work now was looking for other ideas.
Households face soaring energy bills, inflation is forecast to hit 10 per cent, and welfare payments and wages are falling far behind the increase in prices.
When the government failed to announce new support measures in the Queen’s Speech, some in the Conservative Party broke ranks.
Former prime minster Theresa May urged Mr Johnson to “ensure that we’re a government that doesn’t just work for certain parts of the country”.
While former Brexit secretary David Davis called for ministers to swallow their pride and initiate tax cuts before the summer at the latest.
