Govt 'must focus on cutting cost of living'

It is essential for the government to work on reducing the cost of living and boosting people's disposable incomes, which could lead to a rise in the number of people benefiting from the best savings rates.
 
Jonathan Davis, an economist and managing director of Jonathan Davis Wealth Management, has said that cutting the cost of basics needs to become a priority.
 
He warned that current efforts that emphasise the importance of providing low-cost credit to low income families are misguided.
 
Mr Davis suggested that the focus should instead be on lowering the costs of petrol, heat, light and food, as these have the biggest impact on those without a high income.
 
He explained: "If the government put their efforts into creating a lower cost of living rather than creating inflation, then that is what would help low income households, not a focus on lower debt."
 
Recent research by Family Action warned that the cost of sending kids back to school has risen to account for almost 40 per cent of this month's income for some parents.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-09-07 13:14:33 © Moneyextra.com