How will having a new government impact the economy and the cost of living crisis?

More than a year on from the biggest water bill rise in 20 years, what's the current state of household finance?

Transcript

00:00I think it's fair to say that the government have inherited an economy that's in a far

00:06better position than we would have thought maybe 12 months ago, particularly with inflation

00:12now down to its target 2%.

00:15There are some concerns it could kind of increase slightly as we get into the autumn, but generally

00:20I think people think it's going to get closer to one and a half percent, never mind two.

00:25So that means that there will be a reduction in Bank of England base rates, and I think

00:31that will be sooner rather than later.

00:33But we should also recognise that Labour seem to have committed to the current tax thresholds

00:39until 2028, so the general view is that could mean 4.5 million consumers move into the higher

00:48tax bracket by 2028.

00:50So it'll be interesting to see how things play out in the coming months, but hopefully

00:54as I say, the cost of living pressures start to reduce slightly.