The chair of Tesco stated that Rishi Sunak must develop a long-term growth strategy to help the UK economy recover from the crisis in living costs.
John Allan, also chairman of Barratt, Britain’s largest housebuilder, said, “The truth is that many people in this nation are suffering from this cost-of-living crisis.” “We’d love to see the government develop a long-term, serious growth plan.”
Sir James Dyson, a billionaire, has criticised the government’s “anti-growth” tax policy earlier in the week. Now, the government is under pressure to announce in the March spring budget measures to prevent a long-term recession, and to address the greatest drop in living standards in 50 years.
Allan stated that tax cuts – which Jeremy Hunt, the chancellor, indicated were not in the budget’s “slimmed down” budget on March 15th – might help, but that a long-term plan was necessary.
He said that there is nothing irretrievable in the UK’s economy, while speaking to BBC Radio 4’s Today program on Friday. “I am optimistic in the long-term, but we have some problems in the short term. These issues have an impact on investments. We can only achieve long-term growth if we want to improve the living standards of our fellow citizens.
Allan anticipates that the headline rate for annual inflation will drop, having dropped to 10.5% last month. However, he does not expect it back to the low single-digit levels enjoyed by the UK in recent years, until “2024 and beyond”. Official inflation targets for the Bank of England are 2%.
According to the Office for National Statistics, annual food inflation rose by 16.8% between December 1977 and December 2007. This is the highest annual increase since 1977.
Allan stated that there has been “a dramatic escalation.” We hope that inflation will begin to decrease by the middle and end of the year. However, this doesn’t necessarily mean that prices will fall. We hope that the increase in prices will be less in the second half.