Recent figures show that inflation has fallen sharply once again and is now at 3.4%. It has rightly been a government priority to bring this down, and we are now seeing the benefits as mortgage rates and grocery prices fall.
From April 1st, the energy price cap also falls by 12% — meaning that for every £100 you are currently spending on energy through your direct debit, you will be paying £87.70.
We have finally turned a corner after a tough few years. Extreme and unexpected global events caused economic shocks around the world, but I am pleased that the government stepped up and supported people when it mattered.
The OBR estimates that we spent £169 billion on supporting individuals and businesses during the Covid pandemic on programmes such as the Job Retention Scheme (furlough), uplifts in Universal Credit, grants and loans for small businesses, and support for entire industries which protected jobs and livelihoods.
When Russia’s invasion of Ukraine led to a surge in wholesale and retail energy prices, and the consequent rise in inflation, the government spent tens of billions of pounds on supporting people through energy bill discounts for households, council tax rebates, the 5p cut in fuel duty, and cost of living payments for vulnerable people and the elderly.
Despite all this, we are now able to cut taxes and increase financial support for public services. In the video below, I outline some of the measures the Chancellor announced in this month’s Budget which will make a big difference to people in Orpington.