Political crisis and economic hardship often go hand in hand. Today, as Westminster watchers turn their attention to Prime Minister’s Questions, millions of families across the country are counting the cost of higher prices.
Inflation rose to 10.1 per cent in September, equalling a 40-year high. More worryingly still, the rise in prices is being driven by the higher cost of food. This hits the poorest hardest, as those less well off spend a greater proportion of their income on groceries.
It is bad news for homeowners, too. These inflation figures make it more likely that the Bank of England will raise interest rates next month by a full percentage point, adding ever more to monthly repayments. Meanwhile, the scaling back of the energy support package from April 2023 is likely to make inflation worse still.
Double-digit inflation presents the Government with a political challenge. September’s figures are those used to calculate the rise in benefits and pensions, although the Chancellor has suggested that link may be broken.
Ultimately, inflation eats away at savings and income, leading to lower living standards. It effectively leads to real-terms cuts to departmental budgets, further emaciating public services. And it demands higher interest rates, making a recession more likely.
The Government has turned away from its growth plan in favour of public spending restraint. It now needs to show it has a plan to get inflation under control.
Bring all to the table
Where there are rising prices, there are demands by workers for higher wages. And when those are not forthcoming, or pay offers represent sub-inflationary rises, industrial action often follows suit.
There may be greater public sympathy for strikes than in previous iterations, given falling living standards across the board. But grinding London and vast parts of the transport network to a halt cannot be the solution.
The most recent strike by the RMT union, on October 8, saw only about a fifth of trains running, according to Network Rail. A fresh wave of strikes could disrupt Christmas travel and extend all the way into the spring.
Industrial action does not exist in isolation. It deprives Transport for London of the revenue it sorely needs and reduces central London to lockdown-like conditions, making the overall economic situation worse, not better.
New Transport Secretary Anne-Marie Trevelyan has taken a more conciliatory approach to industrial disputes than her predecessor. This is welcome. We urge her to bring all parties around the negotiating table to ensure Londoners do not face yet more disruption.
Little Simz’s big advice
Londoner, rapper and now Mercury Prize winner. Artist Little Simz saw off the likes of Harry Styles and Sam Fender to win the prestigious prize for her fourth studio album, Sometimes I Might Be Introvert.
She also had advice to up-and-coming performers, which may be of use to people of all ages and professions: “I would just say bet on yourself and believe in yourself. Keep people around you that care for you as a person… And just fly, man, don’t be afraid to take that leap.”
