How to mitigate the cost of living crisis?
Written by: Emma Lunn
The Center for Policy Studies (CPS) believes it knows the answer and has offered a number of simple and inexpensive ways the government could help UK households as prices rise.
The think tank has released a briefing paper that outlines a host of measures the government could implement immediately to help meet the short-term challenges of the cost-of-living crisis – most at little or no cost. zero for the Treasury.
The CPS says the government must start by immediately cross-assessing Whitehall on the value of the proposed policy changes for the next two years and ensuring they do not impose additional costs on individuals and households. He says if they do, they should either be delayed or removed entirely.
The CPS goes on to suggest that all departments be asked to produce a list of the charges they currently impose on households and ask if they are necessary.
Along with this review, the CPS says efforts should focus on tackling the areas that impose the greatest financial burdens on households: housing, energy, food and childcare.
The document sets out a number of proposals: scrap the green levy of £153 on consumer bills and direct it to general taxation, unilaterally abolish tariffs on all imports and reduce childcare regulations to minimize costs.
But he says these are only short-term solutions and that the government must also focus on supply-side reforms to unleash economic growth, increase our resilience and improve living standards in the longer term.
Karl Williams, author of the report and senior researcher at the CPS, said: “The cost of living crisis shows no signs of slowing down anytime soon. The ideas we have put forward today can support families in the short term, at very little or no cost to the treasury.
“However, these measures need to be supported by longer-term supply-side reforms if the government is to deliver the economic growth the UK desperately needs.”