Labour has rejected the Prime Minister's claims we are
turning an economic corner, as new analysis from the party
revealed costs for working households are £7,800 higher each
year to due to rising inflation.
This comes on top of the £870 families will be hit by under
the Tory tax double whammy of rising council tax and frozen
income tax thresholds.
That means that, since the last election, the average cost of a
weekly budget for a typical household has increased by £150
for everyday things like utility bills, food, petrol and clothes
- despite tax changes being seen in pay packets today.
This huge hit from inflation doesn't include increasing mortgage
costs, with millions of households set to be worse off after
interest rates spiralled in the wake the Tories' disastrous
mini-budget.
Ahead of a visit to meet a family hit by the cost of living
crisis in the North East with Labour Leader , Labour's Shadow Chancellor said:
“£150 pounds might not mean a lot to the Prime Minister, but for
an ordinary working people it means cutting back on meals out or
family holidays, and in many cases having to watch every penny as
essentials take up even more of their income.”
This comes as warns to scrap
his unfunded £46 billion commitment to abolish national insurance
contributions that risks emptying the state pension pot, and
causing more pain for pensioners who've worked hard all their
lives for a decent retirement.
MP,
Labour's Shadow Chancellor of the Exchequer, said:
“At the end of the month, people should be able to see that their
hard work has paid off. But even accounting for the tax changes
in the Spring Budget, working families are facing higher costs
for everyday things like food, clothing and bills. And now the
Tories are asking for a pat on the back.
“The Tories say that we are turning an economic corner, but the
truth is found in working people's bank balances. £150 pounds
might not mean a lot to the Prime Minister, but for an ordinary
working people it means cutting back on meals out or family
holidays, and in many cases having to watch every penny as
essentials take up even more of their income.
"Thanks to Tory chaos, working people are worse off. And now
Rishi Sunak's £46 billion unfunded NICs cut threatens our
economic stability all over again. They should scrap this
reckless pledge now.
"After the damage the Tories have done, I know there are no quick
fixes. That's why and I
have pledged a decade of national renewal, built on the rock of
economic stability.
"The choice at the election is clear: a changed Labour party with
a plan to grow our economy and make working people better off, or
five more years of pain under the Tories."
Ends
Notes:
According to official government statistics, in 2019/20 an
average household with two earners was spending £34,159 annually
on items included within Consumer Price Inflation (CPI). With the
CPI index, which includes utilities, food, insurance and
petrol, soaring by 22% between 2019/20 and March 2024, the cost
of maintaining the same household's regular expenses has
increased by £150 a week or £7,800 per year.
Sources:
