TUC Urges Chancellor Healey to Address Living Costs in Budget

The Trades Union Congress reports that UK households have paid an average of £13,961 in additional costs for mortgages, loans, energy, and water bills since 2021. This increase, which averages £2,792 annually, is attributed to post-pandemic inflation and conflicts in Ukraine and the Middle East. The TUC notes that the UK currently has the weakest consumer spending growth in the G7 since before the pandemic.

John Healey, the Chancellor of the Exchequer, has pledged to provide households with breathing space but warned that government resources are limited. The Treasury is preparing a tightly focused budget for October 28 to avoid market volatility, a strategy supported by the International Monetary Fund.

Other stakeholders are pressing for specific interventions. The Confederation of British Industry has requested cuts to business electricity costs and employer national insurance. Simultaneously, the Institute for Public Policy Research proposed raising £16bn through capital gains tax to fund a cost-of-living package that would include energy bill caps and rent stabilization.