Cable: Rising food prices hitting the poorest

Following the surprise increase in consumer price inflation figures announced this week, the Liberal Democrat Shadow Chancellor Vince Cable has demanded that, with the poorest being hit the hardest by rising prices, the Government must cut taxes for low earners in next month's budget.

Commenting on the inflation figures, Dr Cable said: "These figures paint a very contradictory picture."

"There is a real danger of entering a world of falling prices, wages and production. But at the same time, food, public transport and council tax costs are still going up and living standards are being squeezed for many people on low incomes.'

"The Government must use next month's Budget to cut taxes for low earners. These cuts must be fully funded by closing the tax loopholes which only benefit the wealthy."