As inflation once again ticks upwards, concerns are mounting that the UK Government has lost its grip on the cost-of-living crisis and that households are continuing to pay the price.
New figures from the Office for National Statistics show that inflation rose to 3.8% in July, catching forecasters by surprise and marking the sharpest increase since January last year.
It follows fresh warnings from the National Institute of Economic and Social Research that the UK Government is on course to miss its own fiscal targets by more than £41 billion this autumn even as borrowing costs edge higher than those seen in the wake of the 2022 mini-budget.
The spike comes at a time when energy bills remain stubbornly high, wages are still playing catch-up with prices, and many households are entering autumn with little breathing room.
SNP Economy spokesperson Dave Doogan MP said the latest rise in prices shows the Labour Government has already “lost control” of the economy.
“They promised stability and they promised change,” he said.
“But the truth is that things have only got worse under their watch.”
Mr Doogan said the rising cost of food in particular would hit families hardest.
“After a year in government, the only thing rising faster than prices under Labour is the list of broken promises,” he added.
The latest economic figures add to growing concern that the UK economy is not on a path to recovery with critics highlighting the structural impact of Brexit, fragile household confidence, and a policy gap between government rhetoric and action.
“Month after month, the economic data tells the same story,” said Mr Doogan.
“Brexit Britain is broken.
“And Scots are increasingly seeing that the cost-of-living crisis won’t be solved under Westminster control.”
He warned that the upcoming autumn budget would be another squeeze on household incomes unless urgent steps are taken to offer targeted support.
“It’s clear that Chancellor Reeves is laying the ground not to help families, but to plug the financial black hole in the UK Treasury.
“It’s little wonder that polling now shows the Labour Government is just as unpopular as the toxic Tories they replaced.”
Mr Doogan said the bleak economic pattern underlined the case for Scotland to take control of its own financial future.
“Scotland is rich in energy, land and natural resources, but we need the full powers of independence to build a fairer and more prosperous economy.
“It’s time to stop managing decline under Westminster and start building the future we know is possible.”
