Cost of living crisis: Liz Truss considers 'nuclear option' of cutting VAT to 15% - Sky News

Liz Truss is considering a "nuclear" option that could see VAT cut from 20% to 15%, according to reports.

A source told Sky News that Ms Truss "will consider options to help people, but it would not be right for her to announce her plans before she has been elected prime minister or seen all the facts".

Estimates suggest such a VAT cut would save the average household more than £1,300 a year, while the Institute for Fiscal Studies said it would cost taxpayers £3.2bn a month, or £38bn for a year.

Rishi Sunak's team criticised the plan as expensive and "incredibly regressive".

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4:53

How will energy prices hit households?

A source close to Ms Truss's discussions told The Sunday Telegraph: "They [the Treasury] have talked about the Gordon Brown approach that he took at the time (of the financial crisis), when it looked as though consumer confidence was falling.

"They are talking about the last big economic shock that hit the whole economy and consumers in 2008, and the Treasury's response to that."

And another claimed she "doesn't have time" to offer targeted support, warning: "People are going to start going out of business from the minute she takes office."

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Mr Brown announced a year-long cut in VAT from 17.5% to 15% in December 2008 in response to the financial crisis.

Liz Truss and Rishi Sunak have been under growing pressure to say how they will help the millions of Britons struggling with record energy prices and inflation.

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Conservative MP Simon Hart, who is backing the former chancellor in the leadership race, told Sky News any plan to tackle the cost of living crisis needed to be "serious, affordable, and targeted".

He defended Mr Sunak for not declaring "precisely" how much he would invest, arguing it would be "irresponsible".

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0:44

'My spending approach is the right one'

Read more:
Explainer: Everything you need to know about higher bills
Analysis: Even those who've done the right thing won't escape impact of energy bills rise

Other possibilities being considered by Ms Truss include extending the 5p cut in fuel duty beyond March, and resuming help for businesses that was seen during the worst of the COVID-19 pandemic, such as a larger reduction in VAT for hospitality, tourism and agriculture.

Sacha Lord, Greater Manchester's night-time economy adviser, said on Saturday: "There is no energy price cap for hospitality. An untenable situation.

"Without intervention, we will sadly see closures like never before in our lifetime. It's criminal."

He retweeted a post from the owners of the Rose and Crown pub in Merseyside, which said it had received a quote of £61,000 for its electricity bill.

The Sunday Times said Ms Truss's team is also considering lifting the personal tax-free allowance, raising the point at which people pay the 40% rate of tax, and cutting the basic tax rate below 20%.

An insider told the newspaper that if Ms Truss decided against immediate tax cuts, they could be incorporated into a longer-term review of the tax system, which she is expected to announce alongside a fiscal package.

Mr Sunak wrote in The Times on Saturday that help with energy bills should be directed at low-income households and pensioners, delivered through the welfare system, winter fuel and cold weather payments.

He also acknowledged that providing "meaningful support" would be a multibillion-pound undertaking".

A Treasury spokesperson said the department is making the "necessary preparations" to ensure the next government has options to deliver extra help "as quickly as possible".

Meanwhile, in his final days as PM, Boris Johnson said that the UK's future "will be golden", despite some "very tough" months ahead.

Writing in The Mail On Sunday, he blamed Vladimir Putin for the worsening crisis, saying: "It was Putin's invasion of Ukraine that spooked the energy markets. It is Putin's war that is costing British consumers.

"That is why your energy bill is doubling. I am afraid Putin knows it. He likes it. And he wants us to buckle."

Last week, energy regulator Ofgem announced that the price cap would rise by 80% from October, meaning a typical default tariff customer will pay £3,549 a year.

The latest predictions from energy consultancy Cornwall Insight are that the price cap will breach £6,600 in April.

It prompted calls for more government help directed at the most vulnerable, but Chancellor Nadhim Zahawi said that even those on higher salaries could struggle in the months ahead.

He says Britons on £45,000 may also need support to pay their energy bills.

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2022-08-28 04:52:30Z
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Olivia Pratt-Korbel: Two men held over fatal shooting in Liverpool released on bail - Sky News

Two men held over the fatal shooting of nine-year-old Olivia Pratt-Korbel in Liverpool have been released on bail.

Police arrested a 36-year-old man from Huyton and a 33-year-old man from Dovecot on suspicion of murder and two counts of attempted murder.

Both have been released on bail and the 36-year-old has been recalled to prison after breaching the terms of his licence.

Image: Police carried a door away from the scene of the shooting on Saturday

In an update on Saturday afternoon, officers said they "still need people to come forward".

Detectives are trying to "build up a strong evidential picture and bring those responsible to justice".

Officers were seen carrying a door away from the scene of the attack on Saturday, while Merseyside Police is continuing to seek information about a car.

"We are still appealing to anyone who saw a black Audi Q3 in the days leading up to the shooting, or has any information about its movements after leaving Kingsheath Avenue on the night of the shooting," the force said.

It is also looking for CCTV, dashcam, and smart doorbell footage, which can be submitted online via mipp.police.uk.

Liverpool captain Jordan Henderson wore a shirt at Anfield on Saturday with the message: "RIP Olivia, YNWA" (you'll never walk alone).

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Earlier, detectives warned that "silence is not an option" and they "need names".

They also want to ensure there is "no hiding place for anyone involved" in the killing of Olivia.

The schoolgirl was shot after a gunman chased his intended target, who has been named as 35-year-old convicted burglar Joseph Nee, into her family home in Dovecot.

Her mother Cheryl, 46, was injured in the shooting.

Image: Detectives are looking for information on an Audi Q3

A local councillor told Sky News that grief in the community has turned to "anger" over the shooting on Monday night.

Harry Doyle, assistant mayor of Liverpool, said: "The community are clearly going through the stages of grief. We feel it.

"Initially it was shock, now it's very much anger, and you feel that.

"(There is) anger about lots of things but ultimately we want to find the right people (responsible)."

Image: Joseph Nee is believed to have been the intended target of the shooting

Councillor Doyle said he had not seen reluctance from the community in coming forward with information.

He added: "People have come forward with information since day one - and they've come forward in their droves.

"I know the police have been really impressed with the amount of people who have come forward with information."

Anyone with information is asked to message @MerPolCC or contact Crimestoppers on 0800 555 111.

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2022-08-27 16:11:56Z
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Olivia Pratt-Korbel: Two men held over fatal shooting in Liverpool released on bail - Sky News

Two men held over the fatal shooting of nine-year-old Olivia Pratt-Korbel in Liverpool have been released on bail.

Police arrested a 36-year-old man from Huyton and a 33-year-old man from Dovecot on suspicion of murder and two counts of attempted murder.

Both have been released on bail and the 36-year-old has been recalled to prison after breaching the terms of his licence.

Image: Police carried a door away from the murder scene on Saturday

In an update on Saturday afternoon, officers said they "still need people to come forward".

Detectives are trying to "build up a strong evidential picture and bring those responsible to justice".

Officers were seen carrying a door away from the murder scene on Saturday, while Merseyside Police is continuing to seek information about a car.

"We are still appealing to anyone who saw a black Audi Q3 in the days leading up to the shooting, or has any information about its movements after leaving Kingsheath Avenue on the night of the shooting," the force said.

It is also looking for CCTV, dashcam, and smart doorbell footage, which can be submitted online via mipp.police.uk.

Liverpool captain Jordan Henderson wore a shirt at Anfield on Saturday with the message: "RIP Olivia, YNWA" (you'll never walk alone).

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Earlier, detectives warned that "silence is not an option" and they "need names".

They also want to ensure there is "no hiding place for anyone involved" in the killing of Olivia.

The schoolgirl was shot after a gunman chased his intended target, who has been named as 35-year-old convicted burglar Joseph Nee, into her family home in Dovecot. Her mother Cheryl, 46, was injured in the shooting.

Image: Detectives are looking for information on an Audi Q3

A local councillor told Sky News that grief in the community has turned to "anger" over the shooting on Monday night.

Harry Doyle, assistant mayor of Liverpool, said: "The community are clearly going through the stages of grief. We feel it.

"Initially it was shock, now it's very much anger, and you feel that.

"(There is) anger about lots of things but ultimately we want to find the right people (responsible)."

Image: Joseph Nee is believed to have been the intended target of the shooting

Councillor Doyle said he had not seen reluctance from the community in coming forward with information.

He added: "People have come forward with information since day one - and they've come forward in their droves.

"I know the police have been really impressed with the amount of people who have come forward with information."

Anyone with information is asked to message @MerPolCC or contact Crimestoppers on 0800 555 111.

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2022-08-27 16:10:46Z
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Energy bills: Middle-earners will need help with rising prices too, says chancellor - BBC

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Middle-earners, as well as low earners, are likely to need government help to pay their energy bills this winter, Chancellor Nadhim Zahawi has warned.

The energy regulator hiked the price cap on household bills by 80% on Friday, meaning the average bill will rise to £3,549 a year from October.

Speaking to the Daily Telegraph, Mr Zahawi said even those earning £45,000 a year may need support.

He said the Treasury was exploring "all the options" to help households.

He added that the country was in a "national economic emergency [that] could go on for 18 months, two years".

Both Liz Truss and Rishi Sunak, one of whom will be announced as the next prime minister on 5 September, have pledged further support, though neither has given details.

Environment Secretary George Eustice defended the wait for policy announcements from either candidate, saying it was right that whoever got the top job would "want to look at all of the options, properly costed" when they take office.

"Both candidates have said they will do more - you don't have long to wait," Mr Eustice told BBC Radio Four's Today programme.

"They've both made clear that this will be absolutely at the top of their in tray," he added.

The government has already said that all households will get a £400 rebate on energy bills, with low income and vulnerable households receiving an additional £650.

Francisco's story: Money worries with baby on the way

Francisco Salvatierra

Francisco Salvatierra, 37, in Cardiff has been a teacher for the last seven years and earns £38,000 teaching Spanish in Caerphilly. He and his wife's joint household income is about £56,000.

Even with two incomes, we're facing financial difficulties. Our rent has increased by £200 in a month's notice, and our energy bills are likely to hit £350 a month. What does it say in a country where people are working but they can't afford to pay for their energy?

Forty years ago, the difference between poverty and financial struggle was a job. Now, it's not the case anymore. I have a decent job, but it doesn't stop me from experiencing financial struggles.

Getting a mortgage is science fiction for me. It's almost £1000 in rent for our flat alone, so how are we going to save for a 10% deposit for houses that are already so expensive? I have had to accept that I'll never be able to get onto the housing ladder.

I'd love to have a second baby, but it was hard enough to have a first one [which is due on Boxing Day]. We kept postponing the decision because of financial worries, but having a second one - I now don't think that's going to happen. We don't know if we're going to be able to afford childcare for our first child because it's outrageously expensive.

The idea of getting a £400 payment doesn't solve anything. We need more than charity, we need social and financial justice, like taxing energy companies who have billions in profits.

It feels like I haven't been given the chance that my preceding generations had. When is it our time for my generation to have a chance? It feels like Groundhog Day.

The rise in the energy price cap - which is the maximum amount that suppliers can charge households per unit of energy - means millions of households will see their annual bills rise from about £1,971 currently.

Typical prepayment meter customers will also see their bills rise to £3,608.

Charities and experts have warned that the rise will have a devastating impact on households and that lives will be at risk without government intervention.

• 'Lives at risk' as energy price cap soars by 80%
• What can I do if I can't pay my energy bill?
• What can be done to tackle the energy crisis?

In his interview with the Telegraph, Mr Zahawi said he was also concerned about those who were not on benefits.

"If you are a senior nurse or a senior teacher on £45,000 a year, you're having your energy bills go up by 80% and will probably rise even higher in the new year - it's really hard.

"If you're a pensioner, it's really hard. So Universal Credit is a really effective way of targeting, but I'm looking at what else we can do to make sure we help those who really need the help."

How much are energy prices rising by?

• The price cap, set by the regulator, Ofgem, is rising by 80% in October
• The price of electricity will rise on average from 28p per kilowatt hour (kWh) to 52p and gas will go up from 7p to 15p per kWh
• A typical annual energy bill paid by direct debit is currently £1,971. In October, that will rise to £3,549
• Prepayment meter customers will pay an extra £59 a year from October, taking the new typical bill on a prepayment meter to £3,608

Mr Zahawi said the options being drawn up for the next prime minister to consider included an increase in benefits and a loan scheme for energy suppliers to stop them having to pass costs on to consumers.

He said a price cap freeze had not been ruled out, though he expressed concern that the measure would also benefit households that could afford to pay higher energy costs.

Mr Zahawi added that a number of measures to help small businesses, including temporary reductions to VAT, business rates, or green levies, were being considered, saying a failure to help business would leave a "longer-term scarring effect on the economy".

Labour and the Liberal Democrats have criticised the government for failing to respond to the growing crisis.

Labour says its own plan to freeze energy prices this winter - paid for in part by a windfall tax on energy companies - would save someone on the minimum wage more than £40 a week.

Asked whether it was right that even the richest would benefit, Labour's Darren Jones - chair of the department for business, energy and industrial strategy committee of MPs - said "the vast majority of people" would be affected by the rises.

He added that the government was not set up well enough to get money to people in a targeted way.

Lib Dem leader Ed Davey said the energy price cap rise was "nothing short of a catastrophe for millions of families and pensioners".

Ian Blackford, the SNP's Westminster leader, said people were already saying they would be unable to heat their homes or put food on their tables.

"These are costs people simply can't afford," he told BBC Breakfast. "The government has a responsibility to step in."

Mr Blackford warned businesses could "go to the wall" over winter, and added: "This is an emergency as big as the Covid crisis. In such a scenario, the government has a responsibility to act."

AFP

Speaking to broadcasters on Friday, Mr Zahawi also split with cabinet colleagues who have so far resisted suggestions that households should be encouraged to reduce their energy usage.

A spokesperson for Prime Minister Boris Johnson said this week that choices about energy consumption remained "decisions for individuals".

Asked about the issue, Mr Zahawi said: "The reality is that we should all look at our energy consumption."

He told the Telegraph the country would have to be resilient as it continued to help Ukraine resist the Russian invasion.

"Putin has worked out that he can use energy as a tool to hit back at us," he said.

"And we're going to need to send a message back to Putin that this is not going to soften our resolve."

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Are you a senior nurse or a teacher? How are you being affected by the rising cost of living? Share your experiences by emailing haveyoursay@bbc.co.uk.

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• 'A NATION OF CEREAL LOVERS': How do you choose the healthiest option?
• AIR FRYER REVOLUTION: How to get the most out of your kitchen gadget

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2022-08-27 13:49:41Z
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'Silence is not an option': Police make another appeal over Liverpool shooting - after two men arrested over Olivia Pratt-Korbel death - Sky News

Police say they 'need names' in their investigation into the fatal shooting of nine-year-old Olivia Pratt-Korbel in Liverpool, and are urging people to share their appeal.

Merseyside Police says it wants to ensure "there's no hiding place for anyone involved".

Two men have been arrested in connection with Olivia's death.

A 33-year-old from the Dovecot area of the city was arrested on suspicion of murder and two counts of attempted murder on Friday afternoon.

On Thursday, a 36-year-old was arrested on the same charges.

Detectives have released CCTV footage of that arrest, as well as an image of an Audi Q3 that was believed to have been used to take Joseph Nee, a 35-year-old man who was injured in the shooting and is believed to be the intended target, to hospital.

Image: An Audi Q3 has been seized by police. Pic: Merseyside Police

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CCTV captures gunshots in Liverpool

That vehicle has been seized and is being examined by forensic experts.

On Saturday morning, Merseyside Police tweeted: "A simple request - share this far and wide, to everyone you know, and ask them to share if further still, so that there's no hiding place for anyone involved in the murder of little Olivia. We need names. Silence is not an option."

Olivia's family has paid tribute to her, describing her as a "unique, chatty, nosey little girl who broke the mould when she was born".

Image: Ian Snodin, ambassador of Everton FC, and Ian Rush, ambassador of Liverpool FC, visit the scene

Image: Flowers left near the Olivia's home

They added: "Although her life was short, her personality certainly wasn't and she lived it to the most she could, and would blow people away with her wit and kindness."

The family has urged people to "do the right thing", and said: "If anyone knows anything, now is the time to speak up. It is not about being a 'snitch' or a 'grass', it is about finding out who took our baby away from us."

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2022-08-27 10:56:11Z
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Man dies after entering River Thames during arrest - BBC

Sean Davis/Geograph

A man has died after entering the River Thames while being arrested by police.

Officers were flagged down on Kingston Bridge at about 22:30 BST on Friday, the Metropolitan Police said.

A "verbal altercation" involving a man and a woman known to each other was taking place and an allegation of theft was made, the force added.

Officers were in the process of arresting the man, but he had not been placed in handcuffs, when he entered the water, the Met said.

The force's Marine Policing Unit, the National Police Air Service, London Fire Brigade and the RNLI were all involved in the search for the man, who was believed to be in his 20s.

He was recovered from the water at about 00:30 BST and was treated by paramedics, but was pronounced dead at the scene, police said.

The man's family had been informed and the force had referred itself to the Independent Office for Police Conduct (IOPC), according to the Met.

'Public very concerned'

Deputy Assistant Commissioner Laurence Taylor said: "My thoughts, and those of the Metropolitan Police Service, are with the friends and family of the man who has sadly lost his life following this incident.

"I fully appreciate the public will be very concerned. We of course share that concern.

"The Met's Directorate of Professional Standards made an immediate referral to the Independent Office for Police Conduct as is protocol in any incident in which a person comes to harm following police contact."

The IOPC said its investigators had taken initial accounts from the officers involved.

In a statement, an IOPC spokesperson said: "We have now begun the process of gathering and reviewing evidence, including footage of the interaction between officers and the man.

"Our thoughts are with the man's loved ones and all those affected by his death."

Follow BBC London on Facebook, Twitter and Instagram. Send your story ideas to hellobbclondon@bbc.co.uk

Related Internet Links

• Independent Office for Police Conduct

• Metropolitan Police

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2022-08-27 11:33:50Z
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Liverpool shooting: Murder arrest over Olivia Pratt-Korbel's death - BBC

Family handout

A man has been arrested on suspicion of murder after a nine-year-old girl was fatally shot in her own home.

Olivia Pratt-Korbel was hit in the chest as her mother struggled with a gunman at the door of their house in Dovecot, Liverpool, on Monday.

Police said a 36-year-old man from Huyton had been detained after an operation involving armed officers in Merseyside on Thursday night.

He was also arrested on suspicion of two counts of attempted murder.

Olivia was killed after Cheryl Korbel, 46, opened her front door on Kingsheath Avenue at 22:00 BST in response to a commotion outside.

The intended target of the attack, 35-year-old Joseph Nee, was being chased by a gunman.

Cheshire Police

The men - complete strangers to the family - burst in and Olivia was fatally shot.

Ms Korbel was shot in the wrist as she tried to shut the door.

She has now been released from hospital.

Nee, from Dovecot, was shot in the upper body and taken to hospital in a black Audi by a third man.

Once his treatment is completed, Nee will be recalled to prison for allegedly breaching the terms of his licence conditions.

• Olivia family ask 'who took our baby away from us?'
• Former drug dealer held after girl, 9, murdered
• Shooting victim was ray of sunshine - school head

The convicted drug dealer was jailed for three years and nine months in 2018 for burglary.

He was also previously convicted of two counts of theft of a motor vehicle, dangerous driving, driving without insurance and driving while disqualified.

Olivia was described by her family as a "unique, chatty, nosey little girl who broke the mould when she was born".

In a statement, they said Olivia "lived [life] to the most she could, and would blow people away with her wit and kindness.

"We as a family are heartbroken and have lost a huge part of our life."

PA Media

Det Ch Supt Mark Kameen, of Merseyside Police, previously said there was a sense of "disgust" in the city about recent shootings including 28-year-old Ashley Dale was killed in the Old Swan area and 22-year-old Sam Rimmer died in Dingle.

Karen Dempsey, 55, was also found stabbed in a pub car park near Kirkby on Monday. Her son has been charged with her murder.

The government has announced it will allocate £500,000 for Merseyside to counter crime and provide mental health support following the killings.

During a visit to Liverpool, Home Secretary Priti Patel said the whole country had been "appalled at the spate of violence".

Earlier, former Liverpool striker Ian Rush and ex-Everton player Ian Snodin left flowers in Kingsheath Avenue on behalf of both football clubs.

PA Media

On the flowers from Everton FC, a message read: "RIP Olivia. No words will lessen the pain or explain such a tragedy.

"Our city stands united. Forever in our thoughts."

While a card on the floral tribute from Liverpool FC read: "Rest in peace, Olivia, with deepest sympathy from all of us at Liverpool Football Club.

"You'll Never Walk Alone."

Why not follow BBC North West on Facebook, Twitter and Instagram? You can also send story ideas to northwest.newsonline@bbc.co.uk

Related Internet Links

• Merseyside Police

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2022-08-26 12:23:51Z
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