THE TREASURY is looking at ways to ease the cost of living, City A.M. understands, raising hopes that the Autumn Statement could see another round of tax cuts or freezes.
After years of high inflation outstripping wage growth, the government has faced criticism for doing to little to ease the squeeze on living standards.
As a result it is understood the Treasury’s economists working on the area have stepped up their efforts in recent weeks.
The government has so far hiked the income tax threshold towards the £10,000 mark, as well as freezing fuel duty and council tax.
Labour has attacked the government over weak wage growth.
“David Cameron says he’s fixed the economy, but for hard working families things are getting harder, not easier,” , said shadow business secretary Chuka Umunna yesterday.
“For too many things have become more difficult and less secure as they face a cost of living crisis.”
But the Treasury argues it has taken steps to help.
“The economy is on the mend, but we’ve still got a long way to go as we move from rescue to recovery and we appreciate that times are still tough for families,” said a spokesperson.