As of April 1st, millions of UK households are facing sharp hikes in council tax, energy, water, broadband, and mobile bills, adding up to £1,000 extra annually. Many still face rising mortgage costs as three, four and five-year fixes agreed before the inflation surge start to expire.

Even with robust wage growth, many families are struggling. Critics claim these increases are worse for the poorest, as welfare cuts introduced by Chancellor Rachel Reeves could push an additional 250,000 people, including 50,000 children, into poverty by 2030.

On top of all that, Donald Trump’s 10% tariff on UK imports has thrown British exporters into turmoil. Britain sends goods worth a total of £60bn to the US every year – they are now all going to be 10% more expensive to buy in the US, with even higher tariffs on cars, steel and aluminium made here. In short, it means those sales are likely to plummet.

Trump claimed the tariffs put the US “in the driver’s seat” and suggested Starmer was “very happy” with the outcome. However, UK ministers were less enthusiastic, calling them disappointing but framing them as a test of Britain’s “pragmatic diplomacy.”

While the UK avoided harsher 20% levies on the EU, Business Secretary Jonathan Reynolds warned without a deal by May 1st, Britain could retaliate with its own tariffs. A 417-page list of potential US goods, from bourbon such as Jack Daniels to Harley-Davidson motorbikes, is already in the works, and a consultation has been launched with UK business by the Department for Business and Trade.

The Government’s handling of this economic turmoil is facing growing criticism. Just days from the Spring Statement and the Chancellor’s much vaunted fiscal headroom has likely been wiped out all over again, raising the spectre of more tax at the Budget in October.

All eyes now turn to June’s Spending Review. This will be the true test of whether Stamer’s Government can act decisively to boost the economy, or whether they will fall short in the eyes of voters.

(Photo provided Shutterstock)