Tougher sanctions against Russia will lead to higher prices at home with knock-on effects for households and businesses.
The influential Treasury Select committee has warned that Russia ’s invasion of Ukraine will have a significant impact on the cost of living in the UK.
MPs said that while they supported tough sanctions against the Putin regime, the Government should provide more support for those on the lowest incomes at home.
Mel Stride, the committee chair, said: “It’s becoming increasingly clear that the Government will need to support those who are hit hardest by price rises.
“Recent reports show that the public finances are in a stronger position than anticipated, and the Chancellor should use this additional fiscal firepower to bring forward support for those on the lowest incomes.”
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Chancellor Rishi Sunak has been under pressure to shore up struggling households ahead of soaring energy bills and cost of goods on supermarket shelves, as well as a national insurance hike.
Money saving expert Martin Lewis warned that energy companies are increasing customers’ direct debits disproportionate to the price cap increase.
He called for the regulator to “crack down” on the practice with households facing a “fiscal punch in the face”.
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Mr Lewis warned that existing Government support for energy bills - around £350 a year - would not be enough when they were facing £1300 rises.
Meanwhile, the Environment Secretary declared that food prices in the supermarket could rise by 8% this summer.
George Eustice told the Food and Drink Federation conference price hikes in foods like wheat due to the Russia-Ukraine war could lead to chicken being more expensive.
