With Morrisons on Springfield Way today advertising petrol at a record 127p a litre, and diesel standing at an eye watering 132p, further pressure is now put on hardworking folk in Anlaby and Anlaby Common as the Tory led Government announced that inflation has risen to 5.1%, a staggering double the target wanted by the Bank of England. The inflation figure tells us how much prices are rising in the shops, and a high figure could mean interests rates will have to go up, making everyone’s mortgages and rents increase.
Bank of England Governor Mervyn King warned, “that families face the biggest squeeze on their spending power since the 1920s”. He explained that Labour’s record of low inflation and interest rates was set to be wrecked by the Lib Dem backed Tory Government and that the combination of a wage freeze and the hike in VAT to a record 20% made the chances of inflation reaching 6% “appreciably higher”.
Labour REDUCED VAT to 15% to help families get through the worst of the Global Downturn which resulted from the reckless behaviour of the Banks. Labour kept inflation under control by making common sense decisions about what needed to be done to reduce the financial burden on hardworking households. Inflation was 2.5% when the Tory led Government took power in May but a reckless policy of politically motivated cuts allied to the VAT increase has seen unemployment soar, this inflationary spike plus Britain slide back into recession whilst economic growth continues in the USA and Germany. It is no co incidence that neither of these economies has seen significant cuts in public spending.
READ OUR NEW LEAFLET AT: