Rishi Sunak says he is supporting the nation during this cost of living crisis – the reality is far different

Inflation has hit 6.2 per cent and will go higher – but the chancellor hasn’t revised spending plans in response. Meanwhile, the squeeze for Britain’s poorest goes on, writes James Moore

The cost of living crisis is growing for many (Getty/The Independent)

“Is that it,” a heckler piped up when the chancellor, Rishi Sunak, took an unusually long pause for breath as he delivered his spring statement.

They could easily have saved that for the end. Faced with an unprecedented squeeze on household incomes – the inflation rate has jumped to 6.2 per cent before Sunak stood up and it is poised to rise again – he offered thin gruel at best.

Tory MPs, in an income bracket able to cope, were given some honey to sweeten their servings. A penny off the basic rate of income tax in future, a year long cut in fuel duty now. Both of those levies have been desired by the party.

Let’s take the fuel duty cut first: ask yourself who will benefit most from a reduction in prices at the pumps. The answer, of course, is the wealthy drivers of large cars. The SUVs and the executive saloons that do so much to pollute urban air quality and create snarl ups.

You could argue that removing VAT from solar panels, heat pumps, or insulation will help to counter the environmental of that, a bit. The measure is welcome. But it too primarily benefits people with the money to afford these things.

“We will support people,” Sunak said. “We will stand by them.” Really? Where is the evidence of that. Sure, increasing the national insurance threshold will reduce the impact of the decision to increase the overall rate when it comes to lower earners. It nets out as a positive for anyone on less than £34,000.

But beyond that, there was very little on offer, particularly for the poorest in society for whom things are rapidly getting very grim indeed. The chancellor sought to buy off his critics by doubling to £1bn the amount of money amiable to local authorities to dispense via the Household Support Fund.

That won’t go nearly far enough. Universal Credit and the state pension are only going up by 3.1 per cent this month with inflation expected to hit close to 8 per cent. The impact will be brutal.

How are people already facing with the horrible “heat or eat” dilemma supposed to cope? What are they supposed to do? Pray?

Debt charities have real cause for concern because those people may end up getting into debt. There is already evidence that the number of people borrowing to pay for day to day essentials is rising. This is a deeply disturbing development because it is a recipe for disaster.

Something else that swiftly became apparent after economists had gone over the figures was that Sunak chose not to revise government spending plans in response to rapidly rising inflation. This means that even departments originally slated for above inflation increases are now likely to face a real-term spending cut.

They will face a stark choice: either cut pay for staff or cut frontline services. The most likely result is that both get hit. Who would work in teaching or nursing or, well, you name it, faced with that?

The government’s critics often point to the low opinion that it appears to have of the British people. A recent, and oft cited example is its miserable response to Ukrainian refugees, based on the clearly erroneous assumption that some Britons hate anyone from overseas and are too mean to help them.

It also appears to think that they are stupid; that they will fall in line with Tory MPs and cheer that future income tax cut while they face a cost of living crisis and a faltering economy. All while the nation’s public services are being strip-mined to pay for that cut.

Thinking of the electorate as stupid is a dangerous game for Sunak to be playing. Having done well during the Covid-19 pandemic, his economic stewardship is starting to come under a harsh spotlight. He is rapidly losing his shine.

The chancellor says he is standing behind people – but he is taking their legs out from under them as he does it. They are probably going to notice how cold it is on the floor.