The UK Labour Party has unveiled a comprehensive £29 billion plan aimed at alleviating the ongoing cost of living crisis, focusing on reducing energy bills, enhancing housing affordability, and bolstering public services. Central to this initiative is the extension of the windfall tax on oil and gas companies, projected to raise £8 billion. This revenue would be utilized to freeze the energy price cap at £1,971 for the average household, effectively saving families approximately £1,000 annually and potentially reducing inflation by 4%. (news.sky.com)
In addition to energy measures, the Labour Party has committed to building 1.5 million new homes over the next decade to address the housing shortage. This ambitious plan includes the construction of 100,000 new council homes in the first term, with rents frozen for five years to ensure affordability. Labour also proposes a permanent mortgage guarantee scheme, ‘Freedom to Buy,’ to assist first-time buyers in securing homes with smaller deposits. (ukglobalinvest.com)
To further support families, the party plans to increase the National Minimum Wage by 6.7%, bringing it to £12.21 per hour. This wage boost aims to enhance living standards and provide workers with greater financial security. (en.wikipedia.org)
Labour’s strategy also includes the establishment of Great British Energy, a publicly owned energy company. This initiative seeks to invest in clean energy infrastructure, reduce reliance on imported fuels, and lower energy costs for consumers. The company would be funded through the extended windfall tax on oil and gas firms, with an initial £8.3 billion capitalisation over a parliament. (independent.co.uk)
These proposals reflect the Labour Party’s commitment to addressing the immediate financial challenges faced by households while investing in long-term solutions to promote economic stability and growth.
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