There is no doubt that the world changed following the Covid pandemic and Russia’s illegal invasion of Ukraine.  After decades of not being an issue, inflation became a menace throughout the western world and getting it under control had to be a top economic priority.  Although the UK economy has grown faster than France, Japan and Italy since 2010, high inflation is the single biggest barrier to both economic growth and living standards.

There is still a way to go as the current 4% level is double the long-term 2% target, but major progress has been made with inflation down from its peak of 11%. Getting inflation under control is the right long-term thing to do, but that can impact economic activity in the short-term, as has been seen in a recent slight dip in GDP, but ultimately our economy will do better longer term by reducing inflation.  The signs are looking promising but when inflation is back down to 2%, keeping it there will remain important.

The impact of inflation over the last couple of years has affected us all, but the Conservative Government continues to work hard to address the impacts, as well address the causes.

Average pay increases of 6% are now higher than inflation and in five weeks’ time, 2.7 million workers on the National Living Wage will see pay increase by 9.8% to £11.44 an hour for workers aged 21 (reducing the age from 23) and over.  This represents an increase of over £1,800 to the annual earnings for full-time workers on the NLW.            

We are now into our first full month of the 2% National Insurance cut for 27 million working people that saves the average worker £450 a year.  To protect the most vulnerable, benefits for people of working age will increase by 6.7% this year and housing benefit will also increase.  The State Pension will increase by 8.5% in line with earnings and the average uplift for households on Universal Credit will be around £470.  It’s been a tough couple of years for household budgets, but I welcome the positive improvements coming.

Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group

21st February 2024