Families across Tower Hamlets are set to feel much poorer over the next two years as the Conservatives’ Autumn Statement make the cost of living crisis feel even worse.

Research from the Resolution Foundation, published following the Autumn Statement, revealed the average household is set to see real disposable income fall by £1,700 over the next two years – by far the largest fall on record. Today, new analysis from Tower Hamlets Labour shows that will mean a staggering £204,850,000 lost across our community.

 

Publishing the figures, Leader of the Tower Hamlets Labour Group Cllr Sirajul Islam said:

“After 12 years of Tory economic mismanagement and 12 weeks of Conservative chaos families in Tower Hamlets are set to pay the price for years to come.

“Disposable income is set to collapse in the months ahead as bills rise, inflation remains sky-high and taxes soar ever higher. We are all going to feel an average of £1,700 worse off in two years’ time, and what’s more that’s £204,850,000 that people aren’t free to spend on the local economy supporting businesses and jobs.

“First the Conservatives crashed the economy, now at the Autumn Statement we saw a plan to make us all even poorer – but no plan for growth.

“But Labour has a plan to escape the Tory doom loop and get the economy firing. We would replace business rates with a fairer system to fire the digital economy, deliver a new industrial strategy and drive through our Green Prosperity Plan to bring down bills and help secure the jobs of the future.”

 

Notes to editors:

  • The immediate outlook for household incomes is truly dire. Figure 33 shows the OBR’s projection for average Real Household Disposable Incomes (RHDI).34 RHDI is set to fall by 7.1 per cent between 2021-22 and 2023-24, equivalent to a £1,700 fall per household: by far the largest fall on record.

https://www.resolutionfoundation.org/app/uploads/2022/11/Help-today-squeeze-tomorrow.pdf

  • There are 120,500 households in Tower Hamlets.

https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bulletins/populationandhouseholdestimatesenglandandwales/census2021#population-sizes-and-changes-for-regions-and-local-authorities

  • Across Tower Hamlets, disposable income will fall by an estimated £204,850,000 by 2023/24
  • The UK needs a serious plan for growth to escape the doom loop of Conservative economic mismanagement. Only Labour has a plan to make this happen:
    • We will scrap business rates and replace them with a fairer system that is fit for the digital economy, and ensures high street businesses aren’t at a disadvantage.
    • A modern industrial strategy to support the sectors of the future and an active working partnership with business.
    • Support for entrepreneurs – our start-up review will help us make Britain the best place to start and grow a new business, creating jobs and strengthening communities
    • Fixing holes in the Brexit deal so our businesses can export more abroad.
    • Our Green Prosperity Plan will create good jobs across the country. From the plumbers and builders needed to insulate homes, to engineers and operators for nuclear and wind, we’ll make Britain a world leader in the industries of the future, and ensure people have the skills to benefit from these opportunities.
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