Asked by: Jeff Smith (Labour - Manchester Withington)
Question to the Cabinet Office:
To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, with reference to the Government document entitled Operation Yellowhammer HMG Reasonable Worst Case Planning Assumptions, what plans the Government has to mitigate the predicted disproportionate effect on low-income groups of price rises in food and fuel in the event that the UK leaves the EU without a deal.
Answered by Chloe Smith
HM Treasury routinely monitors economic conditions and risks, and the Government has a range of mechanisms available to support vulnerable people. We stand ready to take appropriate action if economic conditions change. Furthermore, officials make estimates of the direct impact of spending decisions on household living standards, and would continue to do so in any no deal response.
The temporary tariff regime, as confirmed on 8 October, took into account, amongst other things, the need to help mitigate any price rises that could affect UK consumers and supply chains. This was a key consideration in our proposals to unilaterally lower tariffs to zero on 88% of goods, including fuel and a number of agricultural products.