Labour: Families hit with a whopping £3,500 increase in cost of essentials

The day before council tax bills go up across the country, Labour has today published new analysis showing families face a harsh increase of £3,500 in everyday essentials due to Tory economic mismanagement.

The party are calling on the government to finally bring in a proper windfall tax on oil and gas giants and use it to fund a council tax freeze this year, to help families dealing with the cost of living crisis. 

Findings show that since December 2019, the essentials of housing, fuel and power have gone up by £1480; food and non-alcoholic drinks have gone up by £700; clothing and footwear have gone up by £140; household goods and services have gone up by £360; and transport has gone up by £800.

That comes to a total increase of £3,500 on the cost of essentials alone – a price many households won’t be able to afford, forcing them to cut back.

Labour’s local election campaign kicked off yesterday (Thursday) in Swindon with the party pledging to stand with working people by: 

• Freezing council tax for this year, funded by a proper windfall tax on oil and gas giants.  
• Keeping energy bills low for good by insulating 19 million homes.  
• Reversing the Tory decision to hand the richest 1% of pension savers £1 billion in the midst of a cost of living crisis, and instead introduce specific measures to keep doctors in work. 
• Close the non-dom tax loophole, so people who live and work here pay their tax here, and use that money to fund one of the biggest expansions of the NHS workforce in history and Breakfast Clubs at every primary school.

Commenting on the analysis, Labour’s Shadow Chancellor Rachel Reeves said:

 “That the most basic household essentials have soared to these levels is a mark of 13 years of Tory failure that have left families worse off, public services on their knees and brilliant British businesses on the brink.

"People will be asking themselves whether they feel better off under the Tories, and the answer will be no.

“The cost of living crisis is still biting hard, and taxes are rising, yet the government chose to use the Budget to hand a £1 billion tax cut to the top 1%.

“Labour will stand up for working people and Build a Better Britain. 

“Our pledge to freeze council tax this year would help ease the cost of living crisis, and our mission to secure the highest sustained growth in the G7 will make families across every part of our country better off.”

Ends 

Notes

• Based on detailed ONS data on average weekly spend in different categories, and how prices in the Consumer Price Index have changed between 2020/21 and December 2022. The spreadsheet can be found below. 

Source:

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/bulletins/familyspendingintheuk/april2020tomarch20