Scottish Friendly comments on Sunak’s Spring Statement

    • Households to carry the burden of inflation for longer than is necessary

    Kevin Brown, savings specialist at Scottish Friendly said:

    The chancellor had no choice but to act today and the measures he has announced, such as the fuel duty cut and the increase to the national insurance threshold, will go some way to helping households with the escalating cost-of-living crisis.

    But for those families who are unable to tighten their budgets any further and don’t have savings to fall back on, it’s not enough. They risk being dragged into debt and having to carry the burden of inflation for longer than is necessary.

    It’s 30 years since inflation last topped 6% and that means unless you’re over 50, you have no experience of living costs rising as sharply as they are currently.

    If inflation reaches double digits it’s going to mean more and more families will have to curb spending to make sure they can cover their essentials costs and household bills. The damage falling consumer spending could do to the UK economy could be far worse than the cost of helping more households to get by.