Boris Johnson hinted at an announcement to address the cost of living crisis in the coming days – but the Treasury Department quickly denied there was an emergency budget.

The Prime Minister was under pressure due to rising prices faced by British households during the debate in the House of Commons Queen’s speechwhich defines the legislative agenda of the government.

Labor leader Sir Keir Starmer argued that the government was “left without ideas” as the country moved toward a “stagflation crisis” – using the term to describe when weak economic growth is combined with high inflation.

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Mr Johnson acknowledged that after the aftermath of the pandemic, energy and food prices have risen worldwide, but said the government has “fiscal power to help families up and down the country with all the pressures they face now “.

He added: “We will continue to use all our ingenuity and compassion for as long as necessary, and the Chancellor and I will say more about this in the coming days.”

A Treasury spokesman said immediately after the prime minister’s comments that there would be no emergency budget.

Last month, Chancellor Rishi Sunak said he needed to see how much fuel prices would rise before taking new measures.

“Depending on what happens to the bills, of course, if we need to act and support the people, we will,” he told Mumsnet at the time.

“But it would be foolish to do so now, last month or the previous month if we don’t know exactly what the situation will be in the fall.”

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Starmer accuses government of “stagflation”

“We can’t waste our time on this problem”

Later in his address to the House of Commons, the Prime Minister said: “No matter how great our compassion and ingenuity, we cannot just waste our time on this issue.

“We need to get out of this problem by creating hundreds of thousands of new high-paying and highly skilled jobs across the country.”

The Prime Minister also said about the reduction of government spending, as well as “the burden that the government imposes on taxpayers and citizens”, and promised to correct delays in the issuance of passports and driver’s licenses.

Sir Keir told the House of Commons that “times are hard, but they are much harder than they should be”.

He called for action including an emergency budget, an unexpected tax from energy companies and a better plan to avoid major energy crises in the future, such as confronting opponents of onshore wind farms.

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Sir Keir said Britain needed a “modern government with ideas that fit the aspirations of the British public”.

“This subtle address, devoid of ideas or goals, without a guiding principle or a roadmap for implementation, shows how far the government is from this – too untouched by the problems of the moment, too tired to understand the possibilities of the future, their time has passed,” he said. Labor leader.

He added: “This government’s inability to develop its economy for a decade, combined with its inertia in the face of spiraling bills, means we are looking into the trunk of something we haven’t seen in decades – a stagflationary crisis.”

Sir Keir said the Queen’s speech was “the last chapter in a deplorable response to the cost of living crisis”.

Liberal Democrat leader Sir Ed Davy later asked for clarity on what help could come after a hint from the prime minister and then from the Treasury, which “said they don’t know what the prime minister means”. .

“It would be great if at least the first minister could enlighten the House, because our voters need help, and there is nothing in the Queen’s speech,” he said.

Analysis by John Craig, Chief Political Correspondent

As the reversals go, this one was quick even by the standards of this government. And it revealed even greater tensions between numbers 10 and 11 on Downing Street on taxes and spending.

Responding to Sir Keira Starmer’s calls for immediate relief in the cost of living crisis, Boris Johnson forced lawmakers to sit down, saying: “Me and the Chancellor will say more in the coming days.”

Really? This seemed news to Risha Sunak and the Treasury. “There will be no budget for emergencies, and we will present the budget schedule in the usual way,” – said a spokesman for the Ministry of Finance Sky News.

Then it’s pretty categorical. So what did the prime minister think? Is he trying to get his chancellor to announce emergency measures? Is there another row between the couple behind the scenes?

Early in these deliberations, Speaker Sir Lindsay Hoyle announced that MPs would discuss the cost of living next Tuesday and economic growth on Wednesday.

One of these days the Chancellor will speak on behalf of the government. He is now under a lot of pressure to act. And not from opposition lawmakers, but from his neighbor on Downing Street.

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