Budget Representation to HM Treasury: Our policy Recommendations for National Renewal

The Cost of Living Crisis isn’t over 

Inflation (CPI) remains high at 3.8% in the year to August 2025 ¹ , and the cost of living crisis continues to affect most households. The cost of essentials, including housing ² and food ³ , have risen faster than headline inflation, putting strain on households — especially women and those on low incomes ³ .

Raising Living Standards and tackling Child Poverty

This has a disproportionate impact on those on low incomes, the majority of whom are women, who are more dependent on public services, spend a higher proportion of their income on essentials and have less savings ⁴ .

To address falling living standards, we urge the Government to abolish the two-child limit in line with their commitment to breaking down the barriers of opportunity for every child. This would lift 470,000 children out of poverty ⁵ .

Public Spending and Fair Taxation

Public spending cuts in the name of fiscal responsibility are mistaken.
They weaken the economy, harm those who can least afford it, and deepen inequality. Good public services and a strong social security system underpin a strong economy, and fixing the foundations of the economy must be by ensuring the needs of the most vulnerable are met.

A progressive and fair tax system is essential to building this foundation. Under-taxation of wealth of wealth reinforces gender disparities since women tend to have lower savings and wealth but rely disproportionately on the public goods that taxes help pay for ⁶ .

The tax system needs to be reformed to tax wealth directly by integrating capital gains with income.

Investing in People and the Planet

Investment must include social infrastructure — health, education, and care — alongside physical infrastructure.

These are as integral to the health and wellbeing of people and productivity of the economy. It is not just roads and rail that enable people to get to work and live fulfilling lives, but vital social infrastructure including early education and childcare and social care.

Spending on social infrastructure is also a proactive response to the climate crisis: jobs in health and care produce far fewer emissions than those in manufacturing or oil and gas ⁷ .

Equality Impact Assessments

Equality Impact Assessments ensure policy supports fairness and meet the Public Sector Equality Duty.

They are an integral way of evaluating policy for its impact on different groups of society, including women ⁸ . They are the best tool to ensure compliance with the Public Sector Equality Duty that all public bodies, including the Treasury, are bound by.

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