Living Standards: OBR Growth Forecasts

12. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

13. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

14. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

The OBR revised up its growth figures after data revisions by the Office for National Statistics indicated the economy had recovered more fully from the pandemic than had been expected, which means that the current level of real GDP is nearly 3% higher than was predicted in March forecasts.

The Government put a positive spin on the provisional local government finance settlement yesterday, but the Local Government Association said that it did not provide enough funding to meet the severe cost and demand pressures on councils, and assumed that all councils would increase their tax bills by the maximum allowed next year. What will that do for my constituents’ living standards?

As the hon. Lady will know, we put billions of pounds into councils this year, and the provisional settlement is above what is expected to be the inflation rate next year. If she has specific issues with her local council, I shall be happy to take that up with her.

We have seen one of the greatest falls in living standards in a generation, and the Chancellor has callously removed the household support fund from councils. In Brighton the fund pays for free school meal vouchers in the holidays, the warmth and wellbeing scheme, career centres, family hubs, and food banks such as the one in Whitehawk where my constituency office has its surgeries. Will the Minister think again about scrapping the household support fund, so that councils can support the very worst off?

I want to reassure the hon. Gentleman: no decision has been made about the household support fund. More broadly, however, we have pulled in an average of £3,700 per household this year to help people with exactly what we are talking about. This Government are on the side of people during what is a very difficult time.

According to the Low Pay Commission, one in five people who should be receiving the national minimum wage do not even get that. This is a huge failure of enforcement. How can we have increased living standards if people do not even receive the legal minimum to which they are entitled?

If the hon. Gentleman can give individual examples, I ask him please to let us know. It is, obviously, extremely important that we enforce this, but I should point out that we will increase the levels by 9.8% next year, which will make a significant difference to households up and down the country.

Is not the more fundamental problem with the question posed by Opposition Members the fact that the OBR’s forecasts are never right?

All I can say is that they have definitely gone in the right direction, because the economy next year will be billions of pounds bigger than we thought it was going to be in March.