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Inflation Spike Piles Pressure on Family Budgets

We all know how prices are rising faster than our incomes are growing, except of course if you are one of the 11 millionaires in Eton educated David Cameron’s Cabinet. From the soaring price of basic food, to fuel pump prices nearing record levels and the massive hikes in home heating, further pressure is now put on hardworking folk in Anlaby and Anlaby Common as the Tory led Government announced that inflation has risen to 5.6%, 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 everyones 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 Labours record of low inflation and interest rates is being 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

Cllr. Josh Newlove said, “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.”

Local campaigner Dan Palmer added, “Inflation was 2.5% when the Tory led Government took power in May 2010 but a reckless policy of politically motivated cuts allied to the VAT increase has seen unemployment soar to 2.65 million and this inflationary spike could see 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.”


“We need help for local business, and our advice from leading economists tells us that a reduction in VAT is a key to help people spend money in our local shops. There are four retail spaces currently vacant in the Square and Labour wants to help local business to expand, rather than be forced to close under the iron fist of the Tories economic policies”, concluded Cllr Newlove.


About dermotrathbone

Writer and co author "Through Red Lenses". Activist Unite the Union, Save Our NHS Hull. Fan of Yorkshire County Cricket Club, Hull FC, Munster and Ireland Rugby. Views are mine alone and may not reflect the organisations concerned.


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