Eddie Mair puts Labour MP on spot over energy plan
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Labour Shadow Business Secretary Jonathan Reynolds found himself struggling to find an alternative plan to contain inflation which is currently pushing up energy and food prices. To help energy consumers with skyrocketing energy prices, the Chancellor of the Exchequer Rishi Sunak today announced a £15billion emergency package of measures, which includes an energy profits levy on oil and gas firms and a £400 universal discount on bills.
For its part, the Labour party has been supporting a VAT cut on energy bills. But when pressed to elaborate on other measures to reduce inflation, Mr Reynolds was short of proposals.
While Mr Reynolds explained how financial support would help energy consumers struggling with bills, LBC’s Eddie Mair cut him off, saying: “That’s not bringing inflation down.”
Mr Mair said: “That’s giving people help with inflation.
“I’m wondering how you as a part would bring inflation down.”
Mr Reynolds said: “Well, as I said, part of our measures was chosen because they would’ve given people help but they would’ve been deflationary in themselves.
“And taking VAT off energy bills is a very specific example of that.”
Mr Mair then said: “Yes, but it’s not going to bring inflation down to that kind of level, is it – by a significant amount?”
Mr Reynolds replied: “Well, it’s part of our contribution to that.
“The overall consequence of inflation when it’s double-digit means you’re not going to have one silver bullet to address that.
Mr Mair interrupted and said: “No, that’s why I’ve asked you two to three times for what measures you put in place.
“I heard one”, Mr Maid insisted.
“Well, I’m giving you one. I’m taking VAT off energy bills”, Mr Reynolds replied.
Mr Maid added: “Right, what else?”
“The point is the Bank of England will take appropriate measures in relation to interest rates that it sees fit for its mandate”, Mr Reynolds said.
Mr Maid retorted: “Only leaving it to the bank?”
Mr Reynolds said: “Well, the government’s role in this is to use fiscal policy to do so.
“That is the appropriate division of responsibilities.”
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“So, let’s not let the government get off the hook by saying: ‘look, let’s deal with the consequences of inflation.’
“That is exactly what they’re supposed to do and why they haven’t acted sooner, who knows.
“But look perhaps it’s some of the events this week that has played a part in that.
“But our measures they were taken to help with the consequences of this but in themselves, it’s surely right to pick the things to make a contribution to that too.”
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