The inflation figures released on Wednesday were in line with expectations, with headline inflation returning to normal levels. However, it did not quite reach the Bank of England’s target. Despite this, Prime Minister Boris Johnson has decided to call for an election based on these positive economic statistics and the unexpectedly strong exit from recession.
While some concerns remain about underlying measures of inflation, particularly in the service sector, which are still high at just below 6%, a Bank of England rate cut during the campaign is less likely. The Prime Minister aims to use the election as an opportunity to highlight his vision of a high-tech economy and digitized public services that will lead to a smaller state and lower taxes.
Labour Party leader Keir Starmer, on the other hand, plans to focus on economic issues during the campaign. He will argue that the government is partly responsible for high prices and mortgage rates and that families are not feeling any economic turnaround. Labour’s election promises include more green investment, house-building, and support for steel communities that have been struggling due to global trade tensions.
The Conservatives want recognition for their successful management of the economy during difficult times and their ability to achieve growth and stable inflation despite global challenges such as Brexit and COVID-19 pandemic. They also plan to emphasize their commitment to supporting jobs and bills during the crisis. Labour seeks to criticize the current government’s policies and hold them responsible for any economic problems faced by families and businesses alike.
Overall, both parties are likely to make strong arguments about their vision for Britain’s future economy during this election campaign, focusing heavily on economic issues rather than social or political concerns.
