Hull reacts over fears of a new cost of living crisis

Hull Live readers have been discussing the recent warnings that supermarkets, pubs, and a range of other businesses may be forced to hike prices at the checkout due to a significant government policy change. Chancellor Rachel Reeves raised the rate of employers' national insurance contributions in the Autumn Budget, leading to concerns among businesses about a potential knock-on effect on the cost of living.

The term "cost of living" refers to the amount of money needed to sustain a certain standard of living, which typically rises gradually over time. However, when there's a sharp increase, it results in what's known as a cost of living "crisis", similar to what has been unfolding since 2021, forcing people to make tough financial choices regarding basic necessities like food or household goods.

Chancellor Rachel Reeves faced up to the difficult decision to hike taxes on businesses but argued it was the "right choice" to secure funding for better public services, including education and healthcare. Additionally, UK companies must gear up for an increased minimum wage, higher business rates, and stricter laws and regulations concerning workers' rights.

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The hospitality sector is bracing for price hikes of around 6% due to recent changes, as per industry body UKHospitality. The group's CEO, Kate Nicholls, said: "The increase to employer NICs and, crucially, the lowering of the threshold left hospitality owners with a sleepless night as they came to terms with the enormous cost they will have to bear from April onwards. The new cost of employing core members of staff is eye watering an increase of at least £2,500 is far, far beyond what anyone's worst-case scenario was."

"Hospitality is at the heart of our communities but the enormous value it delivers both socially and economically is under threat."

Chancellor Rachel Reeves said: “I had to make big choices. I don’t want to repeat a Budget like this ever again, but it was necessary to get our public finances and our public services on a stable trajectory.”

In response, the people of Hull had plenty to say. But it seems to have certainly divided opinions...

Mrman259 says: “Cost of living? Total rubbish, roads full, pubs full, restaurants full and fireworks going off left right and centre.”

Hullman1 thinks: “The only people who say they are affected by the cost of living are those who live beyond their means. They still have the latest phones and have streaming services, drive cars, but aren’t willing to do anything about it. They want the lifestyle they can’t afford and will sponge off everyone, claim every benefit available and use food banks because they are free.

"As for me, I am financially independent. I don't rely on the government, why? Because I planned for my retirement and I am enjoying it. I will be claiming my State Retirement Pension because I paid into this and it’s not a benefit it’s an entitlement.”

Johngt40 sees things differently: “As a pensioner l am just over the threshold to get benefit credit so l have therefore had my Winter Fuel Allowance taken from me. This always allowed me to keep my house just that little bit warmer during the winter months. Along with higher prices that will inevitably be caused by the budget, the eat or heat scenario has become even more difficult. At the present time l have not used my heating and l am hoping the mild weather continues!”

Do you think we are on the brink of a new cost of living crisis? How will you cope? Have your say in our comments section.