Cost of living. Bank of England predicts most severe slump since the 1930s. Policies for the few not the many
The Bank of England has raised interest rates to 3% which will mean more expensive mortgages for many. That is just the start however. The increase will lead to higher rents and place jobs at risk. The Bank knows all this which is why its also predicted the worst slump since the 1930s.
ONS figures which looked at the cost of supermarket own brand and budget products over 12 months have shown increases that one suspects will not be discussed or even recognised around Rishi Sunak’s Cabinet table.
The hike in the prices of staple food items is huge. What is not huge in many cases are the pay rises to cover it. Meanwhile the Chancellor still seems to be pondering not raising benefits in line with inflation which stands at over 10%.
The ONS figures represent really useful knowledge, an index of a crisis where millions will struggle to pay to heat and eat in the months to come.
The economic policy chosen by the Bank is one designed to protect the few at the expense of the many. There are alternatives, including taxing the rich and large profitable companies more. Don’t expect this to be the agenda when Jeremy Hunt presents the Tories latest economic statement on 17th November
The need for pay rises that at least match the 10% inflation rate is another side to the story
The People’s Assembly backed by a range of unions and campaigns has called a national protest for Saturday 5th November in central London (Embankment, midday). It’s a start
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