Labour must do the “hard work” of keeping inflation down by avoiding price increases through “damaging” new workers’ rights, Jeremy Hunt has warned.
Jeremy Hunt has issued a warning to Labour over inflation (Image: Getty)
Last month’s 2.2% inflation rate is hovering just above the Bank of England’s (BoE) 2% target.
The unchanged figure has dampened hopes of a BoE interest rate cut tomorrow.
Mr Hunt MP, Shadow Chancellor, said: “Labour inherited inflation at the Bank of England’s target and today’s figures show they must do the hard work to keep inflation down, as we did in Government.
“That includes rejecting potentially damaging new employment rights which will put up the cost of labour and ultimately raise prices as a result.”
Labour risks a rise in business costs over its workers’ rights reforms which are set to be unveiled in coming weeks.
Meanwhile it is largely expected that the BoE interest rates will be left at 5%.
Monica George Michail, at the National Institute of Economic and Social Research (Niesr), said: “Given that inflation is set to gently rise towards the end of the year, and that underlying inflation remains elevated, this reduces chances of a rate cut tomorrow..”
While CPI is below recent forecasts by the BoE, inflation is predicted to edge further above the 2% target towards the end of the year, leaving policymakers in no rush to cut rates, according to economists.
The rise back up in services inflation comes after an encouraging drop in July, also signalling that underlying price pressures remain in the economy.
Grant Fitzner, chief economist at the ONS, said: “Inflation held steady in August as various price fluctuations offset each other.
“The main movements came from air fares, in particular to European destinations, which showed a large monthly rise, following a fall this time last year.
“This was offset by lower prices at the pump as well as falling costs at restaurants and hotels.
“Also, the prices of shop-bought alcohol fell slightly this month, but rose at the same time last year.”
Jake Finney, economist at PwC, said the “Taylor Swift effect” may be partly behind the more than doubling in cinemas, theatres and concerts price inflation, which jumped from 4.4% to 9.2% last month, with August seeing the last of her UK dates for the Eras tour.
He added the latest data overall “suggests that a September rate cut is unlikely”.
Mr Finney said: “However, we expect that the latest inflation data will do little to dissuade the Bank from cutting in November, given that headline and services inflation are both tracking lower than their latest externally published forecasts.”
Darren Jones, Chief Secretary to the Treasury, said: “Years of sky-high inflation have taken their toll; and prices are still much higher than four years ago.
“So, while more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy.”
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Nigel Farage’s shock plans for Tory conference revealed ahead of crunch leadership husting
The Reform UK conference kicks off in Birmingham this Friday, and Nigel Farage will be riding high as polls suggest his party is now up to a whopping 18 percent in the polls.
While Labour tanks down to 29% in the latest polls – down six points since the general election – the Tories are now being squeezed on all sides.
Reform UK has just seven points to make up before they overtake Rishi Sunak’s party, and this year’s Tory Conference could prove make-or-break for the historic political force.
Members will gather in Birmingham later this month, where they will hear pitches from the four remaining leadership candidates Robert Jenrick, Kemi Badenoch, Tom Tugendhat and James Cleverly.
Some Tories may have been concerned that Nigel Farage may repeat his cheeky behaviour last year, when he turned up to the Conservatives’ Manchester conference in his role as a GB News presenter.
Nigel Farage’s plans for Tory conference have been revealed (Image: Getty)
The visit sparked mass membership and media attention, stealing the limelight from Rishi Sunak and leading to claims Mr Farage could take over the Tory Party as leader after the election.
In news that will relieve Conservatives, therefore, The Express can reveal that Mr Farage will not be attending their conference this month, having not applied for a media pass despite his ongoing GB News presenting role.
The decision by Mr Farage may shock some, however, given the potential political benefits of repeating his spotlight-grabbing antics of 2023.
Instead Mr Farage will focus on shoring up Reform UK, and proving it is not a one-election wonder as UKIP was in 2015.
Set to meet at the Birmingham NEC this weekend, Reform UK has billed their conference as an enormous party, celebrating their shock breakthrough at the election.
Mr Farage gatecrashed Tory conference last year (Image: Getty)
The main day, Friday, will also be an opportunity for members to meet Mr Farage’s new MPs for the first time.
All five will speak, concluding with Nigel Farage at 4pm.
As well as the parliamentary forces, Ann Widdecombe, party chairman Zia Yusuf and celebrity adventurer Ant Middleton will also address the plenary.
Reform also promises that Friday evening will be filled with “music, dancing and drinks”.
Day two will begin the pledged rollout of more formal party structures, seen to have been an impediment to Reform at the election when the Tories, Labour and LibDems had local associations able to campaign.
The Saturday will see a speed-dating for local members, meeting and discussing interest in becoming candidates or association members in the new branch structure.
The party declares: “This is your chance to be a vital part of the Reform movement and help shape the future of British politics.”
According to recent analysis by Britain Elects, while 2% of the Labour 2024 vote has switched back to the Tories, Reform UK has gained another 10% of the Tories’ 2024 vote share.
