Tax cuts could be announced before summer, in government bid to get a grip on cost of living crisis
Ministers have been forced to rethink plans after grim economic forecasts, including a possible recession
Last updated 29th May 2022
The Government could announce new tax cuts before Parliament breaks for the summer, according to Sky News.
Ministers have been forced to rethink plans after grim forecasts from the Bank of England suggested the economy was now at risk of recession.
It's come after Boris Johnson was criticised over policies in the Queen's Speech, which opposition MPs and charities warned didn't go far enough to help struggling families.
Tax cuts could come before the summer
Further help had been expected in August, when the energy regulator announces the next increases in the energy price cap.
But Sky News understands ministers are now likely to make a decision before the end of July, and could include more help with energy bills.
Ministers have reportedly been urged to go faster in coming up with ideas to help households deal with rising prices.
Speaking after the Queen's Speech on Tuesday, the Prime-Minister suggested new measures would be announced in the coming days.
Economic growth shrinks in first quarter of 2022
Meanwhile, new figures revealed Britain's economy grew at the slowest pace for a year at the start of 2022.
Official figures show a contraction in March, with GPD rising by just 0.8% between January and March.
That's down from growth of 1.3% in the previous three months and the weakest since the first quarter of last year.
The figures showed that on a monthly basis, GDP fell by 0.1% in March after growth stalled in February - revised down from the 0.1% previous growth estimate - and rose by 0.7% in January.
While the expansion means GDP is now 0.7% above levels seen before the pandemic struck, the figures are likely to mark the calm before the storm as warnings grow over a recession in the UK due to the cost-of-living crisis.
Chancellor Rishi Sunak said: "“The UK economy recovered quickly from the worst of the pandemic and our growth in the first few months of the year was strong, faster than the US, Germany and Italy, but I know these are still anxious times.
“Our recovery is being disrupted by Putin’s barbaric invasion of Ukraine and other global challenges but we are continuing to help people where we can.
“Growth is the best way to help families in the longer-term so as well as easing immediate pressures on households and businesses, we are investing in capital, people and ideas to boost living standards in the future.”