𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

When will the cost of living end? Many of us feel poorer than we did five years ago – for good reason. We began to see all sorts of prices rising faster than incomes in 2021, and it hasn’t stopped. As a result, life’s little luxuries are becoming more unaffordable, as a bigger share of our income goes on the basic stuff.

But there’s no sign of it ending. And experts are warning it will actually get worse next year – and could continue into 2028. That’s a massive headache for new Prime Minister Andy Burnham, as he contemplates whether or not to call an election next year. He could wait until 2029, but Labour insiders warn the Prime Minister, still enjoying a bit of a honeymoon with voters, will only become more unpopular as time goes by.

The other good reason for holding an early(ish) election is that Reform is going through a series of problems that have dented its popularity.

The nightmare scenario for Labour would be for right-wing voters to unite around one party – either Reform, if it can sort its problems out, or the Conservatives, if Reform collapses entirely.

But at the moment, the right-wing vote is split, so this is fertile territory for Labour.

However, the entire UK could also benefit from an early election – because the sooner we have the chance to get rid of this lousy Labour government the better.

Labour aren’t entirely responsible for the cost of living crisis, but they have made it worse.

Next year, we can expect to see interest rates increase. Experts expect the Bank of England to push up the base interest rate as much as three times. There could also be an increase in November.

And even the fear of rate increases is causing banks and building societies to push up their mortgage interest rates.

It means anyone on a flexible rate mortgage, or renewing a fixed rate mortgage, will see their monthly payments increase.

The average two-year fixed mortgage rate is already up by 0.89% since March, adding £131 to monthly mortgage repayments on a £250,000 mortgage repaid over 25 years. But that’s just the start.

Then there is the cost of basic shopping. The Food and Drink Federation has forecast that food inflation is expected to reach nearly 4% by Christmas and peak at 6.4% in July 2027. It means we’ll pay more at checkouts.

And this isn’t all down to Labour. The war against Iran and the impacts of extreme weather on the global food supply chain, including El Niño and this summer’s droughts across the UK and Europe, have affected food prices.

But in the face of these crises, the Government has made things worse – imposing new taxes on employment and packaging, for example, and increasing business rates for some shops.

Then there is the cost of household energy.

Ofgem has announced a 4% increase in the domestic energy price cap coming into effect in October.

Experts Cornwall Insight say there will be no relief in sight for January, with bills forecast to rise a further 9% in the new year. This would put an average January bill up to £1,872 a year, £149 higher than the £1,723 October price cap announced in August.

The January figure will not be confirmed until November but experts are certain it will be bad news for households, whatever the precise number.

Add it all up, and it means 2027 will be a miserable year for you and me. But Chancellor John Healey is set to make it even worse, by putting up our taxes in his October 28 Budget.

Andy Burnham’s cost of living crisis is shaping up to be the worst one yet.