Conferences, consumers and the cost of living
As another party conference season came to a close, the cost of living debate has remained at the top of the political agenda. And with the general election drawing ever closer, it’s an issue that isn’t going away.
The cost of living is clearly top of the agenda for consumers too.
While people have started to become more optimistic about the economy, times remain tough for many with the price of essentials spiralling up and incomes stagnating. Expensive credit or dipping into savings are the fallbacks for many.
The conferences have revealed different approaches, but many similarities, among the three main political parties on consumer policy.
Last week the Conservatives emphasised the importance of economic recovery, arguing that the ‘cost of living crisis’ will be solved chiefly by a return to growth. At the same time they proposed a freeze in fuel duty and help for more people to access mortgages.
The Liberal Democrats, who kicked off this year’s conference season in Glasgow, chose to focus on specific announcements including free school meals and a clampdown on mobile phone roaming charges.
Similarly Labour highlighted specific measures, with their 20 month freeze on energy prices probably the biggest single announcement during the conference season and one that has been much debated since.
Behind the battle of words about the pros and cons of the freeze offered by Labour, there is agreement among all parties that more competition in the wholesale energy market, a simpler retail market with consumers at its heart and a tougher regulator will all be essential in keeping energy costs down.
As one minister told me in Manchester "we shouldn't be precious about adopting good ideas, wherever they come from".
Now the hunt is on for more eye-catching help for hard-pressed consumers, with both Government and Opposition expected to announce further policy moves this autumn, especially in essential utilities and transport that are among the major components of household costs.
Senior advisers say that the aim is to develop a pro-consumer narrative that shows politicians are on your side.
All parties recognise the crisis of trust in essential services like banking and energy. They should now set out how they will redouble their efforts to reform failing consumer markets, promoting competition so that prices are kept in check.
Their starting point should be that giving more power back to consumers is good for the best businesses and for growth in the economy. But as major energy suppliers prepare to announce a round of autumn price rises, the question will be: are the politicians doing enough?
