GIVING more cash help to struggling families would only make the cost of living crisis worse, a millionaire Cabinet Minister warned today.
Jacob Rees-Mogg said splashing extra money to ease the squeeze would bring short-term gain – but long-term pain.
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Relentless government spending would fuel inflation and unleash even higher prices, he warned.
His remarks further dampen hopes that Boris Johnson’s next support package will not include more cash benefits.
The PM has vowed to do more to help hard-pressed Brits and has ordered his ministers to find zero-cost solutions.
Mr Rees-Mogg urged his Tory boss to hold his nerve like Iron Lady Margaret Thatcher in the 1980s to slay the inflationary dragon.
The Brexit Opportunities Minister told GB News: “The problem with spending more money is you make the inflationary problem worse rather than better.
“This is very difficult for politicians because with a cost of living problem there aren’t easy popular things to do, and if you do those you make the problem worse.
“You have to do, as Margaret Thatcher showed in the 1980s, the things that need to be done.”
“You can’t take short term expensive measures because they just make things worse.”
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Some Tory MPs are agitating for a windfall tax on the eye-watering profits raked in by oil and gas companies this year.
Rishi Sunak is seriously considering the tax-grab despite energy fat cats warning they would slash investment as a result.
Labour say money raised from a windfall tax should be used to bring down bills for ordinary Brits.
Mr Johnson is also understood to be eyeing tax cuts but stopped short of announcing anything at his Cabinet awayday yesterday.
The PM does want to change the law so nursery staff can look after five children at a time, rather than four.
Ministers hope the move will cut the astronomical costs of childcare, the highest in the Western world.
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