Autumn statement to have 'devastating' consequences for Glasgow
Jeremy Hunt’s plans to save £55billion in Thursday’s Autumn Statement could thrust whole communities to the brink of destitution and force major cuts to frontline jobs and services, Glasgow’s City Treasurer has warned.
Jeremy Hunt’s plans to save £55billion in Thursday’s Autumn Statement could thrust whole communities to the brink of destitution and force major cuts to frontline jobs and services, Glasgow’s City Treasurer has warned.
Councillor Ricky Bell said vital council services are already buckling under the strain of massive inflationary pressures and energy bills, with massive savings needed to balance Glasgow’s books in the years ahead.
"catastrophic for our communities"
But with a significant share of the Chancellor’s expected £35billion cuts to public spending to be passed on to Scotland, Cllr Bell said many local government services would pay the price for the Tory economic and policy failures.
Councillor Bell said: “The consequences of what looks likely to be passed on to Scotland’s public services will be catastrophic for our communities.
“Budgets which are already beyond stretched will simply be unable to cope. I fear that Mr Hunt’s remedy for sorting the consequences of the Tory’s failure to get to grips with soaring inflation and the energy market, the impacts of Brexit and the mayhem of Truss and Kwarteng’s mini-budget will be a critical blow to many services Glaswegians rely on.
“It’s difficult to see how we can function as our citizens expect with the pressures already created by the UK’s economic environment without another hammer blow.”
Multimillion pound budget blackhole
Glasgow is already facing a spending gap next year of around £120m, over a third of which is pay inflation.
Almost another £27million is a result of rising energy and utility costs and the cost of borrowing to invest. Council officers are currently drawing up options to help inform next year’s budget.
Councillor Bell added: “Given the size of our city and the scale of our challenges we’ve consistently made the case for a better funding deal for Glasgow.
“But what’s coming down the line - even before the Chancellor makes his Autumn Statement - already dwarves anything in our recent history.
“The responsibility for these extraordinary economic circumstances and the catastrophe they threaten do not lie within Scotland. Nor do the solutions.
“But rather than protect our most vulnerable by ensuring benefits rise with inflation and that employers can help low-paid public sector workers through the cost-of-living crisis with decent pay deals, I fear Mr Hunt will ensure our communities and vital services pay the price for Tory chaos and mismanagement.”
Cost of Living Crisis
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.
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