The hour is urgent...we need a windfall tax on energy firms

THE conquest of inflation was one of Margaret Thatcher's central missions when she became Prime Minister at the end of the 1970s.

- Leo McKinstry

She had seen how soaring prices wrecked jobs, businesses, savings and living standards. With her usual clarity, she said, "The lesson is clear. Inflation devalues us all."

But that is a lesson our country will have to learn again. After decades of monetary stability, the destroyer is back. Yesterday, official figures showed inflation in April had soared to 9 per cent, the highest level for 40 years. In the face of this surge, many households are now struggling desperately to pay even for the basics like food and bus fares. Nor is there any indication that the peak has been reached, since producer costs are increasing dramatically, up nearly 19 per cent on a year ago, while the energy price cap is due to hit an incredible £2,800 in the autumn.

Eager to avoid responsibility for this worsening crisis, the guardians of our economy try to put the blame on international factors, like the legacy of Covid, the war in Ukraine, overstretched supply lines and international commodity prices. Only this week, the embattled Governor of the Bank of England Andrew Bailey told MPs he felt "helpless" as the storm intensifies.