Chancellor Zahawi is travelling to the US for talks about cost of living
The UK Chancellor Nadhim Zahawi is travelling to the United States later for talks on how to tackle the spiralling cost of living.
During what could be his final week in the job, Mr Zahawi will meet US bankers and officials to seek “international solutions” to soaring costs.
Labour has criticised the trip, saying he should be focusing on the UK.
The two candidates for prime minister have signalled they will offer more help if elected on 5 September.
The government has been accused of not doing enough to help people cope with the crisis, amid warnings that people are facing a dire winter with rocketing energy bills. Many people are having to make tough choices such as skipping meals, while others are dreading the colder months.
Both Liz Truss and Rishi Sunak, one of whom will be announced as the next prime minister, have pledged further support, though neither has given details.
James Murray, Labour’s shadow financial secretary to the Treasury, accused Mr Zahawi of being part of a “do-nothing Tory government” – adding that the chancellor was “jetting off to an international chinwag”.
“Rather than going on another junket at the taxpayers’ expense, the chancellor should start listening to people here at home and implementing Labour’s fully funded plan to freeze energy bills,” he said.
Trade union leader Frances O’Grady expressed surprised that Mr Zahawi had travelled to the US. She told the Today programme that trade unions had asked to meet him, adding: “I would’ve thought it was a priority to meet representatives of working people… who are just looking to keep their wages at least up with inflation.”
Mr Zahawi has insisted he has been working tirelessly to come up with proposals for either leadership candidate to bring in more cost-of-living support.
The chancellor – who could be replaced when the new Tory leader comes to power – will meet banking chiefs in New York to discuss co-operating on financial services, before heading to Washington DC to discuss support for Ukraine, the global economic outlook and energy security at the US central bank.
“These global pressures must be overcome through global efforts,” he said ahead of the trip. “I’m determined, here in the US, to work closely with my allies on the common challenges we face to create a fairer and more resilient economy at home and abroad.
Ms Truss’s campaign team says she will not finalise her plans for crucial cost-of-living support before receiving the “full support and advice” only available to the government of the day.
A campaign source told PA: “Liz and her team are working to ensure that they are able to hit the ground running if she is elected prime minister.”
The foreign secretary’s team said she is leaning towards targeted support over help for all, but maintained she is not “ruling anything out”, while it was also reported she is considering slashing VAT by 5% across the board.
A source close to her also told the BBC this week that she would prioritise tax cuts over giving direct payments to every household. Mr Sunak has said the government “must provide some direct support” to all.
Ms Truss – who polls suggest is the favourite in the leadership race – has so far promised to help households by reversing April’s National Insurance rise and temporarily cutting energy levies on fuel bills. Mr Sunak has proposed spending billions of pounds on further payments to pensioners and the low-paid over winter, arguing tax cuts would not help them enough – but has not set out details. He also wants to cut VAT on fuel bills.
