Gordon Brown issues warning as inflation and recession ‘come together’ to unleash crisis

Gordon Brown issues warning about inflation and recession

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Former Chancellor Gordon Brown has suggested that inflation could rise above 11 percent amid an escalating cost of living crisis in the UK. Mr Brown, who guided the country through the 2008 financial crisis, warned that high inflation and a recession could “come together” to put jobs and living standards at risk. The former Labour PM made the remarks during an interview with BBC’s Sophie Raworth.

He urged Boris Johnson to force global action to deal with inflation and food shortages instead of lurching from “crisis to crisis” at home.

This comes as the Bank of England forecasts inflation to reach 11 percent in the autumn.

When asked about whether inflation could rise above 11 percent, Mr Brown said: “It could.

“But I think the most important thing that you’ve got to recognise is that we’ve got both inflation and the prospect of recession.

“It’s when the two come together that living standards fall, jobs are at risk, and of course, family budgets are under huge pressure.

“The government really does need a plan. I am proposing a fourth Budget.”

JUST IN: Nigel Farage points to three signs of Brexit backtracking in warning

1627454

Mr Brown then laid out his own plan to deal with the growing cost of living crisis, saying: “We need to do three things.

“First of all, we need to get inflation on a pathway towards stable prices, and the Bank of England has not done that.

“Secondly, the government’s got to help ease family poverty, because child poverty is going to go beyond five million if we don’t take further action.

“And thirdly, I think what people are really looking for is a plan for growth, to get out of this.”

Cost of living crisis: Brits face 'painful winter' warns expert

Mr Brown explained that Mr Johnson needs to get world leaders together.

He added: “There’s a food crisis, 800 million on the verge of starvation.

“There’s an energy crisis with oil prices going up, affecting every country, inflation and of course on top of Covid and conflict and climate change, which is affecting every country.

“They should concoct a plan that deals in a concerted and comprehensive way that can get oil prices down, that can get food supply moving around the world and can get control of inflation.”

DON’T MISS:

Grant Shapps condemns train strikes as ‘big mistake’ [INTERVIEW]
Irish PM loses it after BBC’s Sophie Raworth shames Brussels [VIDEO]
Ukraine LIVE: Putin’s huge effort as troops reach ‘critical mass’ [LIVE BLOG]

The former PM also predicted more U-turns from the Government as he claimed Mr Johnson and Rishi Sunak will have to “abandon their corporate tax rise” in the autumn, and “they’ll not be able to go ahead with their fuel tax rise”.

Last year, Rishi Sunak announced that corporation tax would rise to 25 percent from April 2023 from a current rate of 19 percent. 

Mr Brown’s comments come as thousands of protestors marched in central London on Saturday calling for more action to ease the cost-of-living crisis and a “decent pay rise” for public sector workers.

Boris Johnson is expected to address the global economic crisis at next week’s meeting of the Commonwealth heads of government in Rwanda.

Source: Read Full Article