It’s not difficult to see that when politicians come up with grand plans on big issues, that for many people the concern is how do they get through to next payday and make ends meet. It’s not a new problem.
A serious of events going back to the banks crashing in 2008, the austerity years which followed and the then seismic shocks of Brexit and the Truss budget not only made people feel less well off, they were less well off. Add to that international uncertainty like the war in Ukraine and now the crisis over Iran and it’s not a surprise that people are looking for a politician or political party which offers a way of materially changing their situation.
It may be early days, but the recent Spring Statement was based on some positive signs on the economy. The statement – itself an important shift from yet another budget which as a whole tends to be destabilising and short term – was a response to the independent Office of Budget Responsibility analysis of what is happening in the economy. The OBR confirmed that inflation is falling faster than thought and is expected to continue to do so.
Interest rates have come down six times though the crisis in Iran may delay further cuts for now. Government borrowing is down with a potential surplus of £15 billion by 2029 to allow more investment in public services.
After such a tough time with falling living standards people are justified in their scepticism but it’s just possible that we’ve turned a corner and the underlying economy is recovering.