Government under pressure on cost of living before next week's Budget
The government is under pressure to help with the cost of living in next week's Budget, but weak public finances mean only limited measures are likely.
The Full Story
A plain summary built from the channels that reported this story.
The government is under pressure over the cost of living and the public finances ahead of next week's Budget. Ministers have spent this week announcing measures they present as practical help, including action on what were described as outrageous parking charges and the fees airports charge for pick-ups. The measures are unlikely to change living standards on their own, and they sit against a much bigger problem: energy bills.
The scope for large-scale help is limited. Energy prices in the UK are set by international markets, and the main way to cut bills is to spend heavily on support for bill payers. That is what the previous government did, but the money is not available now because of the state of the public finances. As a result, some big decisions that might have been expected in this Budget, including on defence, have been pushed into next year. Some in government are said to be hoping to keep their heads down, because what is possible will not be hugely transformative.
The fiscal pressure is not only domestic. The government has said it will use Typhoon fighters to help Saudi Arabia defend itself against attacks from the Houthis. The announcement prompted immediate questions about affordability and the cost of the deployment. The resupply of an American aircraft carrier at sea was also noted after problems with supplies and its sewage system, a reminder of the operational and financial demands that compete with help for households.
The political pressure is sharpened by concerns that households need help now. Events in France were cited as a sign of cost-of-living pressure. Attention fell on Andy Burnham and John Healey, with the suggestion that they should recognise that pressure. Andy Burnham has made the cost of living part of his message, and next week's Budget is seen as a chance to act. The government's dilemma is that voters are worried about their own bills, while demands on the national budget go well beyond making goods and services cheaper for citizens.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| Large-scale support to cut energy bills was reported as unaffordable because of the state of the public finances. | |
| Ministers announced limited measures this week, including changes to airport pick-up parking charges. | |
| Some major Budget decisions, including on defence, were deferred to next year. | |
Channel Perspectives
What each channel focused on, with key quotes.
Sky News framed the story around the gap between cost-of-living demands and the limited room in the public finances. Its analysis stressed that small announcements, such as parking charges, will not transform living standards, while serious help with energy bills would require large subsidies the government cannot afford. It also brought in defence spending and the Saudi Typhoon deployment as competing budget pressures.
- “all politicians are very minded about cost of living”
- “the only real way to bring down energy bills is to throw a lot of money at bill payers”
- “what is possible is not going to be hugely transformative because of the state of the public finances”
Broadcast Timeline
News broadcasts tracked for this story, in time order.