The financial crash of 2008 cast a long shadow over the economy. The mistaken policy of austerity, the economic earthquake which followed Brexit and the massive disruption of Covid left a country in which living standards were at best stagnant, but for most people were falling.
The primary task of the Government elected two years ago was to stabilise the economy and stop the decline. Interest rates have fallen, inflation is lower and the economy is the fastest growing in the G7. But for many families the cost of living problems continue. They still struggle to find the money to feed and dress their kids, days out and treats are rare and holidays beyond the pale. Our new prime Minister understands that and in the first days of his premiership took steps to give families a bit of breathing space. Energy costs remain high and at risk from international crises such as Iran any help so with bills is welcome. That’s why the Government has announced plans to cut VAT on bills before the winter. £45 for households may not seem much but it’s a start.
Travel remains a costly item for families and so the Prime Minster has announced plans for the return of the £2 bus cap. For many people that will save hundreds of pounds a year. And for struggling hospitality businesses which have made campaigned for help, their business rates will be cut by 20%. They all mark a start, a direction of travel and for many people, I hope, relief from the financial pressures they face.