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Without reform, the UK will sleepwalk into another cost of living crisis

City AM

Onward’s Deputy Director, Adam Hawksbee outlines how we can avoid another cost of living crisis in City AM. He writes:

“There’s still an air of mystery around next week’s Budget. How much fiscal headroom the Chancellor has to play with, and what he chooses to do with it, remains shrouded in speculation. But one thing is clear: there will be a heavy focus on the fall in inflation.

Ministers should curtail any celebrations. We have to ask why Britain was hit so hard by this inflationary shock in the first place, especially compared to our G7 peers. Since the end of 2021, the UK’s consumer price index has risen by 15 per cent compared to 10 per cent in the US and France. While higher interest rates have begun to restore balance, the impact has been felt by the poorest regions and most vulnerable families. And managing the fallout has not come cheap: the government’s cost of living support has totalled almost £100bn over the last two years.”

Read the full piece here.

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