Boris vows 'cost of living crisis will get better' despite expert's dire economic forecast

8 June 2022, 22:35 | Updated: 9 June 2022, 00:52

The Prime Minister has vowed the cost of living crisis "will get better"
The Prime Minister has vowed the cost of living crisis "will get better". Picture: Alamy

By Megan Hinton

The Prime Minister has vowed the cost of living crisis "will get better" but warned "it's not going to be quick or easy" after a dire forecast that only Russia will have worse growth than UK next year.

Listen to this article

Loading audio...

Boris Johnson is set to tell the British public in a speech on Thursday, that he is firmly on their side as he "reaffirms his commitment to supporting them throughout this challenging period".

An announcement on further reforms is expected in the coming weeks about Government plans to "make people’s lives easier, boost UK productivity and increase growth".

Mr Johnson's speech in Lancashire comes after the Organisation for Economic Co-operation and Development predicted on Wednesday that economic growth in the UK will grind to a halt in 2023.

The worrying forecast puts only Russia, who are facing a range of sanctions from western countries, ahead of the UK among the largest G20 economies.

The international organisation projects that UK GDP will grow by 3.64% this year. In December it had forecast 4.75% growth.

Read more: Petrol price in biggest daily jump in 17 years as cost to fill up family car passes £99

Inflation will peak at over 10% this year and decline to 4.7% by the end of next year.

It comes alongside a global slowdown which is due in large part to the war in Ukraine.

In response to the OECD report, the Treasury told the Financial Times: "We recognise many people will be concerned by these forecasts," but added "we can’t insulate the UK from global pressures entirely . . . [but] we are supporting people with the cost of living."

The fallout from the pandemic and the shock of Putin’s aggression in Ukraine has caused global pressure on prices, leaving Brits facing rising costs in their daily lives.

In a speech, the Prime Minister will say: "We have the tools we need to get on top of rising prices. The global headwinds are strong. But our engines are stronger.

"And, while it’s not going to be quick or easy, you can be confident that things will get better, that we will emerge from this a strong country with a healthy economy."

He will add: "Over the next few weeks, the government will be setting out reforms to help people cut costs in every area of household expenditure, from food to energy to childcare to transport and housing.

Read more: Tories blast Conservative as he says 'rejoin European single market over cost of living'

"As we continue to deal with the covid aftershocks, and the inflationary impact of the war in Ukraine, our strategy is clear.

"We will continue to use our fiscal firepower to help the country through tough times – and concentrating our help where we should, on those who need it most.

"We will continue with the agenda on which this government was elected, to unite and level up across the country, building the productivity of the UK with generational investments in infrastructure, skills and technology.

"We will continue to support the NHS and to clear the covid backlogs, and to fund all other vital public services.

"At the same time we will use this moment to accelerate the reforming mission of the government, to cut the costs that government imposes on businesses and people up and down the country.

"With more affordable energy, childcare, transport, and housing we will protect households, boost productivity and above all increase the rate of growth of the UK.”

Read more: 'They're still eating McDonald's!': Caller fed up with people 'whining' over cost of living crisis

Mr Johnson is also expected to announce new measures that will help first-time-buyers to get onto the property ladder.

The government say they are "committed to reversing declining home ownership rates", which have seen the proportion of 25–34-year-olds who own their own home fall from 55% to 34% between 1996 and 2016.

With a Government spokespersons saying: "Currently, too many people are spending huge sums of money in the private rental market when that money could be better spent on investing in their futures, in the form of mortgage payments on their own home.

"The Prime Minister will confirm his ambition to unlock the opportunity of home ownership for more people through helping those in a position to buy, to access the mortgage finance they need, ensuring people are incentivised to save for a deposit no matter their financial situation, and improving the supply of housing across the country."

More Latest News

See more More Latest News

iPhones are among the affected devices

Apple reveals serious security issue with iPhones, iPads and Macs that could give hackers complete control

Another day of travel chaos awaits commuters in and to London

Unions threaten to strike for 'as long as it takes' as millions face more travel chaos in London

The officer has been charged with dangerous driving

Armed officer charged with dangerous driving after he drove unmarked car to Streatham terror attack

Ryan Giggs' raunchy poems to his ex were read out in court

Ryan Giggs' mother sits in court as raunchy 'totem pole' poems he sent to ex are read out

Ms Marin said she is a normal 36-year-old who spends time with her friends

Finnish PM denies drug taking after footage of 36-year-old dancing at 'wild' party emerges

A-Level teens should take on apprenticeships, says Charlie Mullins

A-Level teens should take on apprenticeships, says Charlie Mullins

A new image, on the right, has been released

New image of man released by police after girl, 6, abducted and taken to woodland in Droylsden

Mr Mendy and Mar Matturie deny a string of sex offences

Benjamin Mendy 'told rape victim he had sex with 10,000 women and it was a privilege'

Anger as Southern Water ‘unsure’ how many litres of sewage released at closed beaches

Sewage scandal: pollution plaguing Britain’s beaches and beauty spots as water firms told 'clean up your act'

Rishi said his go-to item with his daughters would be a breakfast wrap, which has been discontinued

Rishi Sunak’s 'go-to' McDonald’s order with his family taken off menu over two years ago

Salman Rushdie suspect had ‘read two pages’ of the Satanic verses, after mother says ‘I’m done with him’.

Salman Rushdie attack suspect reveals he 'only read two pages' of Satanic Verses

Exclusive
Sadiq Khan said the heatwave was partly to blame for the recent rise in violent crime

Sadiq Khan blames London's rise in violent crime on longer days, school holidays and the heatwave

MP Margaret Ferrier has pleaded guilty to breaching Covid rules

MP Margaret Ferrier pleads guilty to Covid rule breach

The body of Aran Chada, 51, was found hundreds of metres below the surface of Lake Garda

Body of ‘Hero’ British father found at bottom of Italian Lake after he jumped from boat to save his son

Jeremy Corbyn joined striking rail workers on a picket line at Euston this morning

Labour MPs defy Starmer again by joining striking rail workers as Corbyn shows up sporting black eye

Forensic investigators at the scene in Auckland where the children's bodies were found

Horrified family finds bodies of two children in suitcases bought at abandoned storage unit sale in New Zealand