Inflation - live: Boris Johnson accused of being on ‘shore leave’ as UK faces recession

Scottish Labour leader Anas Sarwar has said “lives could be lost” if the rising cost of living is not tackled.

“There has to be a recognition that this is a national emergency that we should view just like on the scale of Covid-19,” he said.

“Now, I’m not suggesting that this is going to be like it was with Covid-19, where you saw an infection that we have never seen before right across our country, making us lose so many lives,” he told the BBC’s Good Morning Scotland programme.

“But, let’s be honest, if we don’t confront this crisis then lives could be lost as we push more and more people into poverty.”

The MSP told the broadcaster his party is not only calling for the UK Government to do more, but also the Scottish Government to take further steps.

He said the party is suggesting a raft of proposals, including a rent freeze, a water charge rebate, and an evictions ban.

After inflation soared in July, shadow chancellor Rachel Reeves said: “We must get a grip on rising inflation leaving families worried sick about making ends meet.

“Labour’s fully-costed plan to freeze the energy price cap will bring inflation down this winter, easing the burden on households and businesses.

“And it will mean that households won’t pay a penny more for their energy bills this winter.

“People are worried sick and, while the Tories are busy fighting and ignoring the scale of this crisis, only Labour can give Britain the fresh start it needs.”

British workers “are amongst the hardest-working in the world”, Conservative former cabinet minister Sajid Javid said.

Asked about Tory leadership contender Liz Truss’s claim that British workers need to produce “more graft”, he told Sky News: “That comment, as I understand it, was made a number of years ago; I don’t know the exact context that was made in.

“What I also heard her say, just in that snippet that you played there, was that the productivity in the UK versus other comparable countries is generally lower and that’s been a longstanding UK problem and that doesn’t happen because British workers don’t work hard; British workers are amongst the hardest-working in the world.”

He added: “I think what she’s talking about is business and investment, because to increase productivity the Government of course has a huge role to play – there’s capital investment, things like infrastructure investment, for example, those areas that get more of it generally of course can do better in terms of productivity.

“It’s also about skills investment and making sure that we’re investing in skills across the country, not just in the capital or the South East but right across the country, and that is what’s going to make the difference, and Liz has a plan for that.”

Iceland managing director Richard Walker has discussed the supermarket chain’s new interest-free “microloans” scheme to help shoppers with rising inflation.

In an interview with Sky News, he said: “Yeah, so it’s something we have been trialling for the last 18 months. These are affordable microloans that are very time-limited and small amounts – anything from £25 up to £75.

“You repay a set amount of £10 a week and there’s no interest; we will pay the interest on the borrower’s behalf.

“We’ve partnered with a charity-owned not-for-profit called Fair For You, an ethical lending provider, and they are assessing people who are struggling to make ends meet – as you said, there’s plenty of those around at the moment.

“And, if they’re successful in their application, they’ll get a pre-loaded Mastercard that they can spend in an Iceland shop.”

ONS chief economist Grant Fitzner said: “A wide range of price rises drove inflation up again this month.

“Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices.

“Price rises in other staple items, such as pet food, toilet rolls, toothbrushes and deodorants, also pushed up inflation in July.

“Driven by higher demand, the price for package holidays rose, after falling at the same time last year, while air fares also increased.

“The cost of both raw materials and goods leaving factories continued to rise, driven by the price of metals and food respectively.”

Dame Jenny Harries, chief executive of the UK Health Security Agency, urged people not to turn off their fridges to save money on energy costs.

Asked about people heating their homes during the cost-of-living crisis, she told BBC Radio 4’s Today programme: “I think one of the important things here is people recognise the importance of spending what will likely be for many people very limited resource on heating, because that is an essential part of their health.

“We’re very aware of this, and I think I’ve heard anecdotally, for example, people turning off fridges – clearly that creates the risk of infection in food.

“So it is really important people keep their fridges on and keep their heating on, particularly at the extreme ages of life.”

Boris Johnson is facing criticism for a lack of action while holidaying as rising food prices pushed inflation to another 40-year high.

Asda chairman Lord Rose criticised a “horrifying” absence of fresh support, saying: “The captain of the ship is on shore leave – nobody is in charge at the moment.”

The Conservative peer questioned when an emergency budget will be brought forward as he warned that “inflation isn’t sitting there waiting for us” as the cost-of-living crisis deepened.

Official figures from the Office for National Statistics showed on Wednesday that the Consumer Prices Index measure of inflation reached 10.1% last month.

The increase was largely attributed to a spike in food prices and staples including toilet rolls and toothbrushes.

Criticism of Mr Johnson mounted as No 10 refused to say whether he will spend his last weeks as Prime Minister living at his grace-and-favour home, Chequers, during the Tory leadership contest.

He was spotted holidaying with wife Carrie Johnson in Greece after their honeymoon to Slovenia, and his final months in post have also included a Typhoon fighter jet trip and a belated wedding party in the Cotswolds.

Lord Rose, a former chief at Marks & Spencer, told BBC Radio 4’s Today programme: “We’ve got to have some action. The captain of the ship is on shore leave – nobody is in charge at the moment.”

Conservative MP John Glen, who is backing Rishi Sunak in the leadership race, said “we are in a once-in-a-40-year situation” with today’s rise in inflation.

The former Treasury minister told BBC Radio 4’s Today programme: “It is obviously a very significant concern for the economy and most of all for those on fixed incomes.

“And my major concern is how we’re going to support the most vulnerable, particularly pensioners who won’t be able to earn more money.”

He added: “We need to know what Liz Truss is going to do because what we’ve heard so far is a lot of confusion, frankly, not an inclination to do any more handouts, lots of tax cuts that won’t affect pensioners, but will have a significant effect if they’re unfunded on the economy and inflationary pressures.”

The average UK house price increased by 7.8% annually in June, slowing sharply from 12.8% in May, according to official figures.

The Office for National Statistics (ONS) said the average house price was £286,000 in June, representing a £20,000 increase against the same month last year.

In England, average house prices increased by 7.3% to £305,000 over the year.

In Wales, the average prices grew 8.6% to £213,000, while in Scotland prices rose 11.6% to £192,000 and in Northern Ireland, they rose 9.6% to £169,000.

A campaign group is planning a series of protests in the coming weeks to call on the Government to take urgent action to tackle the cost-of-living crisis.

The People’s Assembly said it is mobilising the “biggest, most united” voice of workers and communities from every corner of Britain.

A demonstration will be held outside the Conservative Party’s annual conference in Birmingham in October, followed by a national event in London in November.

Next year marks 10 years since the founding of the People’s Assembly by thousands of trade unionists and community campaigners.

In the past decade, it has organised hundreds of marches, protests, rallies and meetings in towns and cities across England, Scotland and Wales.

The group is calling for utilities to be nationalised, company profits to be cut, and “anti- union” laws to be scrapped.

A spokesman said: “As the Tory Government prepares to ram through even more draconian anti-union laws to prevent workers taking action to defend themselves from ‘fire and rehire’ and the cost-of-living crisis, we are all facing the fight of our lives.

“Millions of households are already struggling to pay for basics such as food, housing and energy. Average household energy bills are predicted rise to £4,200 a year this winter.

“The Bank of England now officially forecasts economic recession and higher inflation for most of 2023.

“At the same time, we are seeing our incomes fall in real terms and we are living in a time of societal collapse.

“But not everyone is struggling. Energy companies report record profits. Others, including supermarkets, transport firms and landlords are enjoying an absolute bonanza. Their profits and rents come from the pockets of ordinary people who are already struggling – even before winter comes.”

The group also called on people to support the increasing number of strikes, saying they help achieve better pay, raise political consciousness and show what is possible when workers “collectively organise”.