Britons warned of damaging impact of rising inflation
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Inflation in the UK is skyrocketing, energy bills are set to hit nearly £3,000 by the end of the year, and trade unions are threatening to cause misery with strike action. Pundits have warned the conditions are similar to in the 1970s when Labour was in charge.
Jim Callaghan oversaw a bleak economic outlook, with Britain gripped by stagflation and the three day week.
Boris Johnson is thought to have complained many in his Cabinet are too young to remember the hours of the past.
Many were not born until the middle of the 1970s with some not born until even the 1980s.
Warning the collapse of the Government was inevitable if ministers failed to get a grip of rising costs, Lord Frost said: “I’m not in Cabinet any more, but I remember it.
“Strikes, power cuts, rubbish piled on the streets, and a pervasive sense that Britain’s problems were too deep-rooted to fix.
“It did for the Callaghan Government.
“Any Government presiding over the same will not survive either.”
Mr Callaghan’s Government was booted out of office in 1979 by Margaret Thatcher, expelling Labour to 18 years on the Opposition benches in the House of Commons.
The economy was the central topic of Cabinet when ministers met in No10 yesterday.
A Downing Street spokesman said: “The Prime Minister said the public were understandably anxious about global cost of living pressures and that the Government would continue to support those most in need.”
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They added: “The PM reminded Cabinet that figures published last week show unemployment is now down to its lowest level since 1974 at 3.7 percent.
“He also highlighted that youth unemployment is at or near record lows and the number of employees on the payroll is back at pre-pandemic levels.
“The PM said that while this was fantastic news and shows we’re heading in the right direction, there’s still a huge amount of work to be done.
“He added that this means being responsible with every pound of public money we spend, and making sure all our departments and the services they deliver are as efficient and effective as they can be.”
Mr Johnson also told his top team “there is no justification for the proposed industrial action” being planned by transport unions and that their plans would “cause major difficulties for many people across the country”.
Transport workers voted yesterday in favour of what they said would be the biggest rail strike in Britain for decades, with concern the action could lead to food shortages.
The Rail, Maritime and Transport Workers (RMT) said staff working for Network Rail, the owner and infrastructure manager of most of the rail network in Britain, and at 14 private companies running train services had backed walkouts or action short of a strike.
The union said it was the biggest endorsement for industrial action since the railways were privatised in the 1990s.
Strike action could begin in mid-June.
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