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TyskySour: Sunak’s Giant U-turn

Novara Media

Novara Media

News, Society & Culture, Politics, Philosophy

4.81.5K Ratings

🗓️ 27 May 2022

⏱️ 50 minutes

🧾️ Download transcript

Summary

Rishi Sunak’s belated cost-of-living package has been welcomed by Labour. But is it all it’s cracked up to be? We ask chief executive of the New Econimcs Foundation Miatta Fahnbulleh. With Michael Walker and Ash Sarkar.

Transcript

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0:00.0

Welcome to a Friday night edition of Tisky Sour. We're talking about Rishi Sunak's economic

0:11.0

policies. They've been celebrated by Labour and quite a few wonks, but are they as welcome

0:17.0

as they seem? We're also talking about Nadine Doris again. Do make sure you wait for that one.

0:23.3

We're talking about George Mombio on Politics Live, a don't look up moment and we have Boris Johnson

0:30.0

changing the rules while he's under investigation. You couldn't make it up. For months,

0:36.0

the Tories have argued against a windfall tax on energy giants and they've put off providing

0:41.1

substantial support for people facing a cost of living crisis. But yesterday, keen to get

0:46.4

partygate off the front pages, Rishi Sunak you turned on both. He's announced that all households

0:54.5

are to get a £400 discount on energy bills in October. That won't have to be paid back as the

1:00.4

original plan was with that £200. Households on means tested benefits will get an extra £650.

1:06.8

Households on non-means tested disability benefits will get an extra £150. And pensioners will

1:12.2

get an extra £300. And importantly, these are not mutually exclusive. So you could in theory

1:17.4

qualify for all four of these and it would be additional. On the funding side, the Treasury say

1:23.2

the plan will cost £15 billion. £5 billion of that is supposed to come from a 25% windfall

1:29.8

tax on oil and gas firms. That they will be able to avoid some of that if they spend more money

1:34.5

on investment instead of, for example, share buybacks. And then £10 billion is to come from

1:40.2

borrowing. The Treasury boasts that if we include the £150.000 council tax rebate issued last month,

1:46.6

£8 million of Britain's poorest households will be £1,200 better off than they would have been

1:51.6

without any help. But the big question is whether it does enough to compensate for 9% inflation.

1:58.8

On that front, the Institute for Fiscal Studies has made these calculations,

2:03.6

their number crunching shows that without any government help inflation would have left a

2:07.4

typical median earner around £580. But the £150.000 council tax rebate and the £400 grant

...

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