GDP figures for last year, released this morning, are a reminder, while inflation has more than halved from 11% to 4%:
- Wages are rising
- Mortgage rates are falling
- And taxes are being cut
We are not out of the woods yet and there is more to do.
High inflation is the single biggest barrier to growth which is why halving it has been the Government's top priority and we must stick with our plan of easing the cost of living and providing more financial security for working people.
While we have experienced a shallow technical recession, the broader economic picture is brightening and forecasters including the Bank of England and the IMF agree growth will strengthen over the next few years. As well as the IMF forecast projecting will grow faster than Japan, Germany, France and Italy on average over the next 5 years.
Wages have been higher than inflation for 6 months in a row and unemployment remains very low, whilst inflation is also forecast to fall to around 2% in 3 months’ time.
Changing course with Sir Keir Starmer’s Labour would mean ripping up the progress we have made because they do not have a plan, they would take us back to square one and add real pressure to every family’s cost of living with higher interest rates and higher taxes.
Keir Starmer and Labour are completely lacking in a plan and are in a constant state of confusion and indecision. They confirmed last week when they abandoned their payment plans for the flagship growth policy. They’ve now got £28 billion a year of promises, with no plans to pay for them. We all know what this would mean: higher taxes on hardworking people.
The truth is Labour have no plan to cut inflation and no plan for growth. If they were currently in charge, the country wouldn’t have made the progress we’ve seen in the last year: inflation falling from 11% to 4%.
Starmer and Labour can snipe from the sidelines as much as they like, but they’re currently asking the British people for a blank cheque. Their failure to have an economic plan would lead to higher inflation, higher mortgage rates, and higher taxes – and send Britain straight back to square one.
