RACHEL Reeves is being urged to go “much further” to help households struggling with the cost of living crisis – with the SNP accusing the Labour Government of having “abandoned the ‘squeezed middle’”.
Kirsty Blackman, the SNP’s new economy spokesperson at Westminster, raised concerns that a package of measures expected to be announced this week will not go far enough to help most families.
Blackman pledged she would be “firmly on the side of the squeezed middle” in the role, as she challenged the Chancellor to remove all VAT on fuel for the duration of the current energy crisis, which was started by the US and Israel's war on Iran.
The SNP MP is also calling on Reeves to introduce a new household energy price cap – a move Blackman said could cut bills for all households by hundreds of pounds.
Blackman spoke out ahead of Thursday’s expected announcement of help from the Chancellor.
But the SNP fear that the package of measures will only help the very poorest – and will not start until the autumn.
Reports also suggest that rather than removing VAT on fuel, Reeves will instead pause a planned rise in fuel duty, as the Gulf crisis continues to put pressure on prices.
As a result, Blackman raised concerns that the Government’s “long-delayed package won’t provide support for the vast majority of families” – with the SNP MP adding it was a “slap in the face for millions of working people and shows the Labour Government is completely out of touch”.
The SNP’s economy spokesperson added: “The Labour Government has abandoned the ‘squeezed middle’ majority of hard-pressed families, who have seen their bills soar but are getting no help from the Chancellor.
“The SNP has been pressing the UK Government to deliver an urgent package of financial support for months now but they’ve dithered, delayed and failed to lift a finger.”
Meanwhile, forecasts suggest a rise in the energy price cap in July could see average annual household bills rise to £1973 – with the increase coming despite Labour’s commitment to cut energy bills by £300 a year for households across the UK.
Amid the rising prices, the SNP insisted the Chancellor should “go much further to help families”.
Blackman said: “As the SNP’s new economy spokesperson at Westminster, I will be firmly on the side of the squeezed middle.
“Of course it’s vital that those on the lowest incomes are prioritised and properly supported but the Labour Government seems to have completely forgotten about those in the middle who are also under pressure payday to payday.
“The Chancellor must go much further to help families in her announcement this week – by removing all VAT on fuel for the duration of the crisis and by introducing a new household energy price cap to cut bills for all households by hundreds of pounds.”
She continued: “The Labour Party promised voters it would cut energy bills by £300 but they will soon be around £700 higher than promised.
“It’s not good enough for the Chancellor to leave millions of families in the lurch.”
Blackman said that in Scotland “families are getting the strongest cost-of-living support anywhere in the UK” as a result of measures announced by John Swinney’s government – but she added that “the Labour Government must finally step up to the plate and do its bit too”.
The UK Government has been contacted for comment.
