Prices for everyday goods are set to rise 40 per cent faster in Britain than any other country in the G7, costing households nearly £1,500 per year, Labour politicians have claimed.
The increased cost of living in this country will represent the fastest and harshest price rises in any major advanced economy in the world, according to their forecasts. And the party is blaming the economic turmoil on Brexit and withdrawal of support for UK businesses, which has left everyone exposed to soaring prices.
Labour also warned that the effects of economic situation would hit businesses and consumers for the next two years. Now the opposition party is urging the Government to deal with rising prices by cutting costs to households. Labour said its Green Prosperity Plan would cut costs for consumers, as it was designed to boost energy security by increasing the supply of renewable and nuclear energy at home.
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The Independent reported that Labour’s shadow chief secretary to the Treasury, Pat McFadden, said: “Families in Britain are being harder hit by price rises than many comparable economies. Other countries have had to cope with Covid and the consequences of the war in Ukraine, yet it is Tory Britain which sits at the top of the inflation growth league of major industrial economies.
“There is so much the Tories could be doing to ease the burden on households and firms, and to make longer-term fixes to make our economy stronger and to get it growing. But instead they are weighed down by their record and happy to sit back watching others push ahead while working people pay the price.
“Our country has the potential and promise it needs to move forward and out of this cost of living crisis.”
According to a bulletin issued by the International Monetary Fund at the beginning of the year, Britain was set to be the only major economy to shrink in 2023. The IMF claimed the UK economy would contract by 0.6 per cent in 2023, despite many other forecasts predicting it would grow slightly.
Chancellor of the Exchequer Jeremy Hunt said that the UK outperformed many forecasts last year. However, The Independent reported that Rachel Reeves, the shadow chancellor, said figures showed Britain “lagging behind our peers”.
The IMF cited the UK’s high energy prices, rising mortgages and tax increases, plus the continuing shortage of workers as reasons for it downgrading its forecasts for the British economy.