Looking back on what I wrote pre Christmas last year we were in a such a different position. The Omicron Covid variant was passing through and at that stage we did not know how virulent it would be nor how effective our existing vaccines would be against it.
For the last couple of years, the festive period looked very different for many of us. It is great that this year we can once again come together with family and loved ones.
Happily we are in a very different position regarding Covid than last year, helped by most of those who are vulnerable taking up their Covid boosters.
However while the immediacy of the Covid crisis in this country is past it’s cast a long shadow. Global supply chains continue to “catch up” but the immediate shortages as people were able to spend money again drove inflation. This has been compounded by China’s ongoing struggle against Covid and Putin’s brutal war against Ukraine. The resulting impact on the cost of living is a huge source of worry. Every lesson from the past is how critical it is to get inflation under control. Without doing so investment is stymied, confidence is lost and it’s invariably the least well off that suffer most. It remains early days but the Bank of England has pointed to this month’s small reduction in the rate of inflation, a sustained fall in inflation into the New Year is what we are all working to achieve.
In both the private and public sectors inflation has had an impact on real wages. This is really difficult but unlike past bouts of inflation the Government is providing help to the most vulnerable households with rising costs and will continue to do so into next year.
Our area has an extraordinary record of generosity and support for those in need whether that’s helping vulnerable people overseas, including Ukrainians who are separated from their families this Christmas, or closer to home. May I extend our thanks to everyone at this time who is helping others in need in every way and may I wish you all a very happy Christmas.