Rishi Sunak cites cheap beer and sanitary products as benefits of Brexit
Rishi Sunak has insisted Brexit is working by citing cheaper beer and sanitary products, as he claimed the economy was looking up and people’s household incomes were “hugely outperforming” expectations.
Despite consumers struggling with high inflation and the cost of living crisis, the prime minister claimed there were “lots of signs that things are moving in the right direction” with the economy.
Rejecting claims from the former Ukip leader Nigel Farage that Brexit had failed under the Tories, he cited freeports, cutting VAT on sanitary products and reforming beer duty as major successes.
“Economic optimism is increasing, consumer confidence is increasing, growth estimates are being raised,” he told reporters on the way to the summit of G7 leaders in Japan.
He said official figures for real household disposable income growth had been “very pessimistic” but were now “hugely” better than predicted.
“That’s a very important measure of people’s living standards – hugely outperforming what people thought,” he said.
The Resolution Foundation said in March that typical household disposable incomes were on course to be lower by the end of 2027 than they were during the Covid pandemic, and last month Huw Pill, the Bank of England’s chief economist, said people needed “to accept” they were poorer.
Average living standards have been broadly stagnant since 2007. However, the latest figures for March 2023 showed a 1.3% increase in real household disposable income after four quarters of negative figures.
Sunak acknowledged things felt “tough” for families but highlighted the government’s contribution to energy bills.
He also defended the economic benefits of Brexit in the face of criticism that it has held back the economy and not brought
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