As the UK economy continues to recover from the impact of the COVID-19 pandemic, Chancellor Rishi Sunak is set to deliver his spring statement on March 3rd. However, the Chancellor is facing mounting pressure to address the rising cost of living in the country.
The pandemic has had a significant impact on the UK economy, with many businesses forced to close and millions of people losing their jobs. As a result, the government has implemented a range of measures to support individuals and businesses, including the furlough scheme and various grants and loans.
However, despite these measures, many people are still struggling to make ends meet. The cost of living in the UK has been rising steadily over the past few years, with inflation currently at 0.7%. This has been driven by a range of factors, including rising energy prices, higher food costs, and increased housing costs.
In addition, the pandemic has led to a significant increase in debt levels, with many people relying on credit cards and loans to make ends meet. This has put further pressure on households, with many struggling to keep up with repayments.
As a result, there is growing pressure on the Chancellor to address these issues in his upcoming spring statement. Many experts are calling for measures to support households, including an increase in the minimum wage, a freeze on energy prices, and additional support for those struggling with debt.
There are also calls for the government to invest in affordable housing, to help address the housing crisis and reduce the cost of living for many people. This could include measures such as increasing funding for social housing, introducing rent controls, and providing incentives for developers to build more affordable homes.
In addition, there are calls for the government to provide additional support for small businesses, which have been hit hard by the pandemic. This could include measures such as grants and loans, as well as tax breaks and other incentives to help businesses recover and grow.
Overall, the Chancellor faces a significant challenge in addressing the rising cost of living in the UK. However, with the right measures in place, it is possible to support households and businesses and ensure that the UK economy continues to recover from the impact of the pandemic.