We are in recession. Following the single biggest interest rate rise for 33 years the Bank of England has warned that it could be longest since records began.
It comes as inflation is set to hit 11%. Londoners are enduring unprecedented financial situations. As Labour’s London Assembly Economy lead at City Hall the fallout from the government’s botched mini-budget is at the top of my agenda. Londoners cannot be forced to carry the burden of economic mistakes made by those in power.
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The financial upheaval that came in the wake of the last Chancellor’s fiscal statement is having a devastating impact on public services, homes, livelihoods, and pensions. It brought in £18 billion in public spending cuts and further widened the gap of economic equality with richer households gaining 40 times as much as the poorest.
Londoners are feeling the effects with shrinking real terms wages. Households across the capital are struggling to pay their bills. But as bills skyrocket the government is refusing to uplift pay, or benefits, in line with inflation. This reckless inaction could pull many more people into poverty.
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A six-month sticking plaster support package for businesses currently on the table helps in the very short-term, but there is no long-term plan in sight. London’s schools, colleges, hospitals, libraries, museums and businesses, big or small, do not know if they will be able to keep the lights, and heating on this winter.
The new Chancellor will announce a new financial statement on 17 November. He must explain how his policies will protect our public services and people on all incomes, not just the wealthy.
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Annual grocery bills recently rose by £643 as grocery inflation hit a record 14%. With winter around the corner, we need immediate support from the government. Without it, already struggling Londoners will not be choosing between heating, or eating, they will not be able to afford either.
I recently launched a report into London’s childhood hunger epidemic. Growing Hungry: The Call for a Childhood Hunger Commission for London revealed the heart-breaking fact that a quarter of a million children in London do not have enough food to eat. This includes 7,244 children living here in Southwark. Such a commission will bring together experts to map out the path to eradicating childhood hunger in the capital. Another of my recommendations is for universal free school meals for all primary and secondary school children during term time and school holidays.
At City Hall, I have been campaigning and lobbying the government to get my constituents, and all Londoners, the support they need. London can come out the other side of the cost of living crisis and continue its post-pandemic recovery – but we need government action now.