Brace yourself for a truly grim couple of years

Jeremy Hunt in Downing St (Image: Getty)Average families will be no better off than they were a decade ago, once soaring inflation is taken into account. That will mean hundreds of thousands more people will turn to foodbanks and charity. This is all despite the chancellor’s decision to increase the state pension and benefits in line with inflation. Taking that decision was essential in the face of spiralling prices, but it only leaves people who live on fixed incomes in the same place they started before the inflation crisis.Jeremy Hunt’s spending announcements will bring yet more pain. Public services did not get the money they needed for decent pay rises that track the private sector. So, as the next election nears, the public sector staffing crisis will only grow, backlogs will continue and local councils will face bankruptcy.The pain will be felt across public services. Although there was some new money for schools, the NHS and social care even here it wasn’t enough. It will be worse still for hard-working staff in the police, fire service, councils and prisons, who won’t be able to provide the service the public deserve.Then worse still is supposed to follow. Mr Hunt announced even more austerity for public services from 2025 if the Conservatives are re-elected. There were also big cuts in investment in things like transport and energy. All these numbers are implausibly low and they look like they’ve been made up just to please the City of London.Lastly there are tax rises. After 12 years of Conservative economic failure, today’s statement means that everyone will pay extra in taxes. And while the decision to make more very high earners pay the 45p rate of income tax was right, those with the broadest shoulders are still not paying their fair share.We need a government which is prepared to tax wealth and unearned income properly to pay for vital public services and ease the cost-of-living crisis.Until ministers come up with a plan to get the economy growing the picture for family living standards and public services will remain bad.The country needs a serious plan for growth which five Conservative prime ministers have failed to deliver. In today’s statement there were no new ideas to get more people working, more businesses investing and more trade with Europe.As we begin another recession more and more people will conclude that the Conservatives have had their chance. Mr Hunt and Mr Sunak can not be trusted with the economy.Andrew Harrop is General Secretary of the Fabian Society.