If the Spring Statement could be characterised as an under-reaction to the cost of living crisis, it would be hard to accuse the Chancellor of making the same mistake twice. Rishi Sunak’s £21 billion package, paid for in part by a windfall tax on oil and gas giants, will help millions of people struggling to stay afloat due to soaring energy costs.
The measures include not only £400 for every household, but further targeted support for those most in need, something the Standard has consistently called for. To that end, eight million households on Universal Credit or other means-tested benefits will receive an additional £650 one-off payment, with more help for low-income pensioners and those in receipt of disability benefits.
As a result, the Institute for Fiscal Studies projects that, adjusting for inflation, a full-time worker on the minimum wage will now be roughly £430 better off this year than last. And by turning the £200 loan into a grant, Sunak has saved the Government from the unenviable position of funding lower bills now by making bills in the near future more expensive.
Yet the fact that leading economists are already warning that the Chancellor will come under pressure to deliver another emergency aid package next year reflects the scale of the challenge ahead.
Sunak will be all too aware that the most durable path away from a cost of living crisis and towards rising living standards is a proper strategy to boost economic growth and productivity, as well as investment in domestic renewables and energy efficiency to reduce our reliance on volatile fossil fuels.
This energy shock has exposed the reality that many people in this country and our city are one or two bills away from real poverty. This immediate help is hugely welcome, but is further evidence of the need to build a more resilient economy and stronger social safety net.
Jubilee bonanza
The Queen’s Platinum Jubilee is not only an opportunity to celebrate Her Majesty’s longevity and service to our country, it is also set to be one big spending extravaganza, providing the West End with a much-needed £80 million boost.
Street parties, dining out and general merriment are the perfect match for London’s first Covid restriction-free summer since 2019. It will be a boon for our leisure, retail and hospitality businesses so reliant on foot traffic and returning tourists. We don’t often do fiestas or large-scale celebrations in this country, which makes this one feel very special indeed.
So take the Elizabeth line into town and raise a glass for Queen and economy.
What a legacy
When the UK first made its case to host the 2012 Olympic Games, the idea of “legacy” — sporting, economic and environmental — was key to the bid. What was perhaps not made quite so clear was that a decade on, the Olympic Park would host an arena for four virtual Abba members, or Abbatars.
But the Standard’s David Smyth has no hesitation in granting Abba Voyage five stars, calling it “the future of live music”. The real foursome showed up at the end to great acclaim, but perhaps they didn’t need to. Now that’s a legacy.
