After a lost decade where economic mismanagement has led to the biggest squeeze in living standards for generations, the Chancellor had two big jobs to do: insulate people from the cost of living crisis and jump start the economy to reverse the decline in living standards. 1/8 He bottled both! And the result is a projected 5.7 fall in real incomes in the next 2 years. With the poorest families being hit the hardest 2/8

Kwasi Kwarteng is right to U-turn on one of his #taxcuts for the rich, but he needs to go back to the drawing board and come up with a vastly different plan if he wants to tackle the #costofliving scandal and reassure the markets and the country.

1/6 There is no evidence that lower taxes will yield higher investment or growth.

But we know that lower taxes will reduce support for those that need it the most, and deprive public services on the verge of collapse of much needed investment.

2/6

Early indications suggest that this is due to be a Budget divorced from reality - a massive transfer of income to the wealthy in the height of the #costoflivingscandal when millions on low and modest incomes are being hammered.

1/5 Tax cuts that disproportionately benefit the rich are not the answer to the crisis we face.

They don’t help the people who need it the most, and rob our creaking public services of the investment they desperately need.

2/5

Liz Truss’ intervention to freeze the #energypricecap for 2 years is a big one that shows the government has finally grasped the scale of the challenge.

But there is a sting in the tail.

1/5

https://twitter.com/NEF/status/1567818672110018561

By refusing to ask energy companies - who will be making £170 billion worth of excess profits over the next 2 years - to foot the bill, the government will instead be asking our public services and communities to pay for this through lower investment.

2/5

📆 Day 1 in office, and our new PM needs to hit the ground running. The govt has wasted weeks as the country walks into a catastrophic #costoflivingcrisis.

@Trussliz must set out her plan to protect people against rising bills and shore up the economy.

It should include:

1/ 1️⃣ Freezing the #pricecap for the next 6 months while she puts in place a new system of free basic energy with rising tariffs for higher energy use: Short term relief that will protect people against high bills for the long term.

2/

📈 #Inflation has hit 10.1% as prices continue to rise.

This spike in prices is all the more painful because it is hitting at a time when:

- Living standards have been squeezed for over a decade, leaving people with little cushion to absorb this

1/5 - Millions of families were already unable to make ends meet because our social safety net has been ripped up, and

- Public services are on their knees after years of underinvestment.

2/5

.@UKLabour’s call to freeze the #energypricecap is a bold measure that grasps the scale of the crisis we’re facing.

Millions of families that simply cannot afford to pay more for energy wouldn’t need to live in fear of further hikes.

1/6 And recent @NEF analysis shows that a 20% #windfalltax on excessive profits & closing of loopholes would raise £14bn. It’s a no-brainer.

2/6

Today, #inflation has continued to climb to a 40 year high of 9.1%.

When a third of people in the UK are already struggling to afford everyday essentials, these price rises will deliver yet another painful blow.

1/5 With 10 years of wage stagnation and a hollowing out of our social security system, it’s no wonder people are now breaking under the pressure of soaring prices.

2/5

At the centre of the #railstrike dispute is a decision by the government to cut investment in our railways and tube by £4bn. This is the wrong call when we should be putting more money into public transport to help people with the cost of travel.

1/6 Rather than bringing unions and train operators back round the table with a new funding settlement, the government is doubling down on the need for pay restraint to stop a wage-price spiral.

2/6

.@keir_starmer is right that the success of the economy should be judged on whether it puts money in people’s pockets, revitalises places that have been held back, ends insecure work, and drives up wages.

1/9

https://twitter.com/guardian/status/1496615440205987846

But pursuing economic growth through the same tired old policies will not be enough. The lesson of the last decade is that growth alone is not enough to lift everyone. There are millions more struggling to make ends meet now than there were 10 years ago.

2/9

Want the *honest* state of play on #LevellingUp today?

@NEF’s new report shows a staggering 60% of the country needs to be #LevelledUp, and sets out a 5-point policy shift to really do the job, backed by 6 metro mayors.

Report: neweconomics.org/2022/02/closin…

Key findings 🧵👇🏾

1/15 Widening #inequality between regions is damaging millions of lives and holding the UK back.

Since Dec 2019, real incomes have risen by less than £20 per year in the NE, £80 per year in NW and £90 in Yorkshire and the Humber.

2/15

It feels to me that @RishiSunak needs some help getting the economy back on track.

Ahead of the autumn #budget2021, I've busted some economic myths he seems to believe...

🧵👇

Myth 1️⃣ : We are well on our way to recovery with the fastest growth in the G7. Busted: Our economy was one of the worst hit, so we are growing from a low base. The IMF says our economy is still 5% below its pre-pandemic path. & our economy is projected to lag behind all G7 countries in 2024.