‘Tinkering around the edges’: Readers say Rachel Reeves’ cost of living package doesn’t go far enough
Rachel Reeves’ latest attempt to ease the cost of living crisis has gone down well with many Independent Readers argue that cheaper biscuits, baked beans and zoo tickets only scratch the surface of the financial pressures facing households.
The Chancellor’s package included plans to cut tariffs on around 100 imported food products, cut VAT on children’s meals and summer activities to 5 per cent, introduce free summer bus travel for children and increase duty-free mileage allowances for people who use their cars and vans for business.
Although Reeves framed the package as targeted aid for working families, many commentators said the measures were small, tokenistic and disconnected from the realities of rising energy bills, expensive public transportation, stagnant wages and rising housing costs.
A recurring frustration throughout the debate was the sense that Labor was “mending around the edges” rather than tackling the larger forces that were causing the difficulties. Readers have repeatedly pointed out that energy companies, supermarkets and water companies continue to make huge profits while ordinary households struggle to cover daily costs.
Many instead called for bolder action, including wealth taxes, public ownership of public services, lower taxes for low-income earners and stronger intervention to directly reduce essential bills.
Others questioned whether supermarkets would pass on savings from tariff cuts, while others criticized the focus on products such as biscuits and chocolate rather than fresh meat, fruit and vegetables.
Here’s what you need to say:
Rising costs beyond food
This is all well and good, and lowering grocery costs is a good thing, but the problem is many other things that affect the poor, like public transportation and energy costs. A few weeks ago, I calculated the electricity costs since I moved into my first flat (under nationalized electricity – NORWAY for my area) compared to the costs currently under private electricity, and they have increased by 12,000 percent in 45 years – that’s twelve thousand percent.
Now tell me, has the official inflation rate increased this much instead of being as worthless as the paper it is written on? Groceries cost five dollars a week back then, and now, not accounting for the contraction, I’ll be lucky to get change for £50 or less. Bus prices have also increased by several thousand percent since privatisation, and trains are now unaffordable and only available to the wealthy.
LadyCrumpsall
Cheaper biscuits won’t save you money
Get a free partial share of up to £100.
Capital is at risk.
Terms and conditions apply.
ADVERTISING
Get a free partial share of up to £100.
Capital is at risk.
Terms and conditions apply.
ADVERTISING
The idea that people will save is absurd. First, cheaper biscuits may mean people buy more. Biscuits are not a good food, and increased consumption – which means more spending – will also increase health expenditures.
If the tax reduces cash collections, it will have to finance it by charging more from consumers elsewhere or by cutting spending.
A lot
This won’t help families
God loves to experiment, but I don’t think reducing the prices of baked beans, biscuits and chocolate will do any good other than giving families more wind and expanding their waistlines further.
What we need is strong government leadership that has the courage to introduce a wealth tax without giving in to the rich who threaten to run away with their wealth.
Justice where we have control of our own water and it is not polluted by foreign billionaires who pollute it at our expense, increase their profits at our expense, and raise our bills for their own gain.
It’s justice that we no longer owe billions of dollars to energy companies while being robbed by oil producers just because we’re trying to stay warm.
Justice we have suffered enough in the 15 years that our public services have been completely stripped away, our assets sold and our politicians scrambling for themselves or their careers.
We want to see the government working for us, proving to us that it is on our side, not on the side of those whose money can buy the country and who do not care about the population that the government is supposed to work for.
Amy
Target support where it’s needed
The question for Labor is this: if last year they claimed that many pensioners “don’t need” the Winter Fuel Charge because they are on a relatively comfortable income, why are families now receiving generous subsidies when it could equally be argued that many of these households “don’t need” the support because they are already well enough off? This whole plan is a colossal waste of money.
Chocolate and biscuits are not healthy staples and there is no reason for taxpayers to pay bus fares to children from wealthy families who can easily afford them. Hasn’t it been claimed that so-called wealthy pensioners don’t need Labour’s WFA?
Public money should be directed to real needs, not wasted on unnecessary universal grants. This will do nothing to improve Labour’s fortunes.
Musil
smoothing around edges
Essentially, Reeves and his partners propose lowering tariffs on certain food items in the hope that powerful supermarket chains will pass some of their profits on to their customers; The move reduces the government’s tax take while increasing the potential margin for companies already making huge profits.
I recently read and published that the 157 richest people in the UK own 22 per cent of the UK’s entire GDP (a fivefold increase since 1990) and that 350 of the richest families own more wealth than half the UK population.
This comes against a backdrop where the real value of wages for the majority of UK citizens has remained virtually flat for decades, while the wealth of the top 1 per cent and 0.1 per cent is growing rapidly. Currently, oil and gas companies are reaping billions of dollars in windfall profits. Water companies continue to pay dividends despite criminally inadequate service. People like billionaire Peter Hargreaves of Hargreaves Lansdown, who donated £3.3 million to the Leave campaign and raved about the opportunities the “fantastic insecurity” of Brexit would provide for people like him and his company, are benefiting as the rest of us become poorer.
So what does a “Labor Party” government offer us under these conditions? A few pence off a tin of beans and a packet of spaghetti – if Mr Tesco is feeling generous, of course.
north wing
Make healthy food cheaper
Biscuits, chocolate and baked beans are three items contributing to the obesity crisis; therefore leaving them more expensive will discourage their consumption.
Instead, impose a price cap on goodies like broccoli, cauliflower and cabbage and “nudge” people to eat healthier, which would save the NHS billions.
DaveAni
Small savings don’t solve bigger problems
It’s a nice gesture, but the reality is that zoo tickets for children cost around £15, or 5.75p per cent.
I doubt it will do much good to anyone who can’t afford £15 in the first place, and the ridiculous price of petrol will quickly suck that up.
Nicko
It’s a shame to tax the essentials of life
Taxing people on the basic needs of life is a shame. There should be zero VAT on all food and clothing. Wealth tax for multimillionaires and the billionaire class. Public ownership of all public services. Stop people evading stamp duty by using companies to buy property, as Blair did. Make affordable housing a right and encourage self-build homes.
The Labor Party made various promises before the election, failed to deliver on them and is now rightfully facing political extinction, and it deserves it.
Peter
Deduct taxes directly instead
So we have to hope supermarkets will pass on the cost savings. My guess is they won’t. If you want to improve the standard of living for low-income families, eliminate the middleman. Stop hoping it will transfer. Reduce the income tax burden on low earners and increase Universal Credit payments.
Mine
Some of the comments in this article have been edited for brevity and clarity.
I want to share your opinions? To log in or register simply click ‘sign in’ or ‘sign up’ in the top right corner. Once you sign up, you can comment on the day’s top stories to showcase your views.
Want your voice to stand out? Independent Bonus Subscribers have priority in featured comments. Subscriber Here.
Be sure to follow our community guidelines, which you can find at. Here. For a complete guide on how to comment, Click here.
