Overview
- The Institute for Public Policy Research, which released new modelling Wednesday, warned inflation could reach 5.8%, growth could slow to 0.3% and the Treasury could face up to a £8bn annual hit if the conflict drags on.
- The think tank proposes a £2,000 household energy bill cap, a 10p fuel duty cut and lower speed limits to curb oil use and blunt price rises.
- Retailers represented by the British Retail Consortium say higher energy, shipping and fertiliser costs will reach tills and they want relief from domestic charges such as energy levies and a packaging tax.
- Farmers warn cash flow is tightening as red diesel and fertiliser costs jump, and the National Farmers’ Union is pressing to postpone a planned 5p-per-litre fuel duty increase.
- The government says it has suspended select food tariffs and extended the 5p fuel duty cut to September, while reports say ministers are reviewing the packaging levy as households face forecasts of about £200 extra on food this year.