Downing Street officials are planning to cut VAT in order to help struggling households as the cost of living crisis deepens.
Steve Barclay, Boris Johnson ’s Chief of Staff, apparently suggested the temporary measure in a bid to ease inflation, which stands at a 40-year high of 9.1%.
Mr Johnson has repeatedly promised to offer more support to Britons, and vowed to cut tax.
When asked about his pledge on Wednesday, the Prime Minister said: “Of course, we always want to try to reduce burdens but we have to do it in a sensible and responsible way.”
Fears are mounting that the cost-of-living crisis could tip the UK into recession, as both households and businesses reduce their spending.
Bank of England Governor Andrew Bailey warned this week that soaring inflation will hit Britain harder than any other major economy during the current energy crisis.
He said that output is likely to weaken earlier and be more intense than in other countries.
And former Labour PM Gordon Brown hit out at Mr Johnson and said he should have “laid out a long-term plan” for the economy in his CBI speech last November, in which he “talked about Peppa Pig instead of talking about an industrial strategy”.
