Partygate: Government set to announce multi-billion pound cost of living package as Sue Gray report expected | Political news

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Rishi Sunak is set to announce a multi-billion pound financial package to help with the cost of living on Thursday, just a day after Sue Gray’s expected report, according to Sky News.

The Chancellor is meeting Prime Minister Boris Johnson tomorrow to sign the package, which could include a new windfall tax, help with fuel bills and help for the most vulnerable.

Mr Johnson would be very keen to be able to announce the major spending package before MPs disappear for the break after Thursday.

Previously, it was expected in early June, after the Queen’s Platinum Jubilee.

The Prime Minister is understood to be hoping this will eliminate part of Ms Gray’s partygate report, which is due on Wednesday.

It will prompt strong accusations that it is using the spending announcement as a ‘dead cat’ to distract the country and its MPs from criticism, but the government will argue that inflation and growth forecasts make the delays reckless.

It is understood that the package has not yet been agreed. Any disagreement between Mr Johnson and Mr Sunak over the content could further delay it.

Mr Sunak has told the CBI to prioritize the most vulnerable, but Mr Johnson will want to do whatever he can to appease his backbench MPs who have made multibillion-pound demands for everything, from benefit increases to VAT reductions.

Two weeks ago Sky News learned that there would not be enough information on the likely cost of energy in the autumn to decide before July.

However, today Ofgem chief executive Jonathan Brearley announced that the UK energy price cap is set to rise in October to around £2,800, an increase of £830.

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