Inflation rose again last month to 3.8% – almost double what it was when the Conservatives left office.
This figure is higher than in other countries: Germany at 1.8%, Canada 1.7%, France 0.9%, and also more than in Japan, the U.S., and the EU average. The International Monetary Fund (IMF) now expects the UK to have the highest inflation rate of any advanced economy.
The Labour Government tries to draw parallels with 2023 when Global inflation increased from 1.9% in 2020 to 7.9% due to the pandemic and the war in Ukraine, but in this case, it was a global phenomenon and the UK inflation moved in line with other countries. In the UK, inflation peaked in late 2022 but dropped to 2% by July 2024, when the Conservatives left government.
Since the Chancellor’s October 2024 Budget, however, inflation has begun climbing again and this time the UK is in a worse situation – out of step with our major competitors.
You’re likely feeling the impact in your weekly shop or even just picking up a few bits for dinner. Yet, Sir Keir Starmer and Rachel Reeves continue to boast that they’re “fixing” the economy. After more than a year in office, their policies are clearly having the opposite effect.
The Bank of England has directly linked rising inflation to Rachel Reeves’s decision to hike employers’ National Insurance. This tax has led businesses to cut jobs, lower wages, and breaks Labour’s promise not to raise taxes. It also directly affects people across the country and in our Borough. You are now paying for the Government’s mismanagement with prices rising even faster in the shops.
The wider economy is suffering under Labour. According to the Office for National Statistics (ONS), job vacancies dropped by 44,000 between May and July this year—lower than during some parts of the COVID-19 pandemic. The Chartered Institute of Personnel and Development reports that a third of businesses facing higher National Insurance costs will reduce staff. The ONS Vacancy Survey shows some firms are freezing hiring altogether.
Household bills are also rising, despite Starmer’s pledge to reduce them.
It’s now £4,000 more expensive to move home than before the pandemic, in part due to Labour’s Stamp Duty hike.
To make matters worse growth forecasts have been cut. The IMF projects just 1.2% growth for the UK economy, compared to 1.9% for the U.S.
The previous Conservative Government secured the fastest growing economy in the G7.
Meanwhile, Labour has created a £41 billion black hole in public finances by awarding inflation-busting pay rises to train drivers and other public sector workers, and agreeing the Chagos deal, to lease something we already have, further driving holes in our national finances.
What this all means in practice is that, under Labour, things are getting more expensive, the cost of living is increasing, taxes are higher and there are fewer jobs available. And the shortfall in public spending created by this Government means that taxes are highly likely to go up again in October.
Conservatives locally and across the country will continue to press for the Government to change direction, for lower taxes, making work pay and fixing the economy that Labour has broken.
By Cllr Pauline Jorgensen
