Meeting of the Parliament 26 October 2022
Last week, I visited the food bank in Anstruther. Those who are familiar with Anstruther and the east neuk of Fife may be surprised that there is a food bank in that area, but it is now an essential part of the fabric of that community.
I was informed by food bank organiser, Richard Wemyss, about the real impact of inflation. He told me that the cost of a basket of 16 goods had increased from £7 in the pre-Covid period to £14.10 now. The items in that basket are not luxury items but basic, essential goods or savers options from Lidl. That is the reality for people on the front line who face the cost of living crisis. Nationally, soaring prices for food and drink were the biggest driver of the latest inflation rise of 10.1 per cent. There has been an annual rise of almost 15 per cent in the price of bread, cereals, meat, milk, cheese and eggs. That is the fastest annual jump since April 1980—it is quite staggering.
It is not right to say that the cost of living crisis is solely the responsibility of the Conservative Government. We all know that Putin and the knock-on effects of the pandemic are significant reasons for the increases, and we also know that United States interest rates are a factor, but it is also wrong to say that the Conservative Government has not made the crisis a whole lot deeper. It chose to make Liz Truss Prime Minister and ignored the warnings from Rishi Sunak about her economic plans and the impact on mortgage costs. The damage that her mini-budget caused cannot simply be reversed.
Those mortgage agreements will not be renegotiated, the increased cost of Government borrowing will not be recouped, and the steps taken to recover the economic reputation of the Government are set to be incredibly harsh.
The failure to act timeously with an energy package earlier on this year when it was announced that the energy prices were to be increased caused immense anxiety for those who were already struggling to pay their energy bills. Refusing to introduce a comprehensive energy package of measures to cover off-grid fuel users in rural areas leaves them in dire straits; £100 for off-grid oil users is simply an insult. By refusing to guarantee that benefits will rise with inflation, this Government is contemplating inflicting an even harsher, darker, colder winter on some of the most vulnerable people in this country.