Sunak Urged To Announce Budget As Living Costs Spiral

The chancellor, Rishi Sunak, is under renewed pressure to announce an emergency budget to help Britain avoid a painful recession amid spiralling living costs and plummeting consumer confidence.

The British Chambers of Commerce (BCC) wrote to

Mr Sunak yesterday urging him to immediately announce measures to ease costs that businesses and households face.

In an open letter, the BCC called for a three-point plan that would slash VAT on energy bills from 20 per cent to 5 per cent, offer free Covid tests for companies and the reversing of a recent National Insurance hike. It came as warning signs mounted about the health of Britain's economy.

Last week, the Bank of England forecast th inflation would hit 10.25 per cent when energy bills jump again in October. The Bank predicts that massive increases to the cost of essentials will result in people cutting back on other spending, causing the economy to shrink in the final quarter of the year before flatlining in 2023.