The UK will be hit by the fastest and hardest price hikes in the G7, the Labor Party has warned.
Forecasts show that the prices of essential goods in the UK will rise 40 per cent faster than any other major advanced economy, costing households nearly £1,500 a year, the party said.
Labor has warned of the economic fallout expected over the next two years as the UK is set to experience the fastest inflation in the G7.
The party blamed the economic turmoil on Brexit and a lack of support for businesses across the UK, leaving “our businesses and households exposed to these soaring prices”.
Labor has urged the government to cut costs domestically to cope with soaring prices and has proposed the Green Prosperity Plan, which aims to increase energy security by increasing renewable and nuclear energy supplies, which they claim is helping it will lower costs for consumers.
Pat McFadden MP, Labor Party shadow secretary at the Treasury, said: “Britain families are more affected by price increases than many comparable economies.
“Other countries have had to cope with Covid and the aftermath of the war in Ukraine, but it is Tory Britain that tops the inflation growth league of the major developed world.
“There is so much the Tories could do to decongest households and businesses and find longer-term solutions to strengthen and grow our economy. But instead, weighed down by their balance sheet, they’re happy to sit back and watch others progress while working people pay the price.
“Our country has the potential and promise it needs to move forward and emerge from this livelihood crisis. Labor will take advantage of this and build a stronger economy.”
Britain is expected to be the only major economy to shrink this year, the International Monetary Fund (IMF) said in January.
According to the IMF, the economy will shrink by 0.6 percent in 2023, although many other forecasters had previously predicted slight growth this year.
Chancellor Jeremy Hunt said the UK had beaten many forecasts last year. Meanwhile, Shadow Chancellor Rachel Reeves said the figures showed the UK “is lagging behind our peers”.
The IMF said it had downgraded its forecast for the UK economy due to high energy prices, rising mortgage costs and taxes, and ongoing labor shortages, but made no mention of Brexit.