Paul Nowak column: ‘Britain needs a living standards Budget’

£14,000. That’s how much extra households have paid in mortgage, energy, loan, and water bills since 2021. From austerity to the pandemic to energy shocks and Trumpflation, working people have borne the brunt of crisis after crisis – and it’s high time for some relief.

As soon as he came into office, the PM offered households some breathing space by capping bus fares, taking VAT off energy bills, and cutting business rates for pubs and clubs. But the truth is, ordinary people are still up against it – and looming on the horizon is a long and hard winter.

So it’s imperative that the chancellor delivers a living standards Budget. One that first and foremost protects households from punishing bill rises. That’s why the TUC has proposed a social energy tariff that could knock up to £560 off bills – to help get people through the cold months ahead.

We’re clear about who can pay for it too – because not everyone is hard up in Britain today. Take the big banks. Britain’s big four banks alone are making over £1bn a week in profits, driven by high interest rates. This is a no-brainer – even Margaret Thatcher imposed a windfall tax on the banks when she faced the same situation.

Let me say this upfront. My first union job was working for BIFU, the bank workers’ union, now part of Unite. I know that the vast majority of those working for Britain’s banks aren’t fat cats or city high rollers. And I know too that a successful financial services industry is critical to this country.

But increasing taxes on banks is a critical first step towards a fairer tax system in Britain – one that taxes wealth and windfall profits, not just work. Because our public services are in dire need of investment – and working people have already been put through the wringer.

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Whether it’s getting an appointment with your GP, getting your foot in the door through the job centre, or fixing potholes on your street, public services are critical for keeping the country running. People can see when they’re in disrepair – and feel it when they improve.

Labour had to pick up the pieces in 2024 and start to repair and rebuild our public services after years of brutal cuts and austerity – and they have sown the seeds of recovery. But the government is going to have to keep going to put our public services on sustainable footing.

And finally, we need a budget that is clear-eyed about the need for growth in every postcode, felt in every pocket.. Action to tackle the cost of living will help, because right now growth is being held back by dampened consumer spending.

British industry needs a helping hand too.

The UK has lost 200,000 manufacturing jobs since 2010 – and crippling energy costs are putting more at risk. The government is launching the British Industrial Competitiveness Scheme to knock money off industrial energy bills, which is absolutely right – but more businesses need to have access to it.

And if we’re serious about backing British industry – the chancellor should establish a Reindustrialise Britain Fund to drive long-term investment in industry and infrastructure.

Of course, there are difficult economic headwinds – and John Healey faces some hard choices to meet his aim to stay within the government’s fiscal rules. But there is more that can be done to deliver growth and unleash investment even within the current framework.

It’s time to release the handbrake. Make the most of public financial institutions like the British Business Bank and National Housing Bank, give the National Wealth Fund a wider mandate, and John Healey can unlock a generational wave of investment.

This Budget has to meet the moment – but it also has to be just the start. We know the ten-year plan is around the corner – but we need to see concrete steps now to take on the vested interests and end the broken status quo.

That means new workers’ rights delivered in full and at pace – starting with banning exploitative zero-hours contracts and delivering guaranteed hours.

It means a plan to end Britain’s failed experiment with privatisation– and deliver public ownership and control of our water. And it means real action to end outsourcing and deliver the biggest wave of insourcing in a generation.

Rebuilding Britain and preparing it for the future is an immense challenge, and this budget has to lay the foundations. But it’s clear what the Chancellor’s first priority must be – and that’s urgent action on the cost of living.

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