Living standards take a hit in Labour’s Budget

‘Judge us by whether, in five years’ time, you have more money in your pocket,’ Keir Starmer told the Mirror earlier this week. This comment came ahead of his speech in the West Midlands, which was designed to prepare the country (and markets) for the Budget. ‘Everyone can wake up on Thursday and understand that a new future is being built, a better future,’ he said in his address. The message was clear: tough decisions now would lead to a brighter – and more prosperous – future in the UK. 

Has that promise been delivered? The difficulty for Starmer and his government is that between Rachel Reeves’s Budget delivery on Wednesday and people waking up on Thursday morning, the Office for Budget Responsibility (OBR) publishes its assessment of the Treasury’s measures. In addition to dashing the party’s hopes of creating a booming economy, the independent body’s assessment also dealt another blow.