Skip to content
Saturday 8 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Thursday 05 March 2026 1:33 pm  |  Updated:  Friday 06 March 2026 4:18 pm

Ministers should ‘stop managing scarcity’ in living standards push

By: Chris Dorrell

Add as a preferred source on Google
GettyImages 2264549868 featuring a prominent business executive at a corporate conference, engaged in a panel discussion.
LONDON, ENGLAND - MARCH 03: Chancellor of the Exchequer Rachel Reeves departs to present the government's Spring Forecast to the House of Commons, at No.11 Downing Street on March 03, 2026 in London, England. Chancellor Rachel Reeves gives an update on her plans for the UK economy. (Photo by Leon Neal/Getty Images)

Government policy should concentrate on reducing the cost of essentials to help improve living standards for lower-to-middle income households, according to a new report from Bright Blue. 

The centre-right think tank argued that policy should focus on lowering energy costs and improving housing affordability, two areas where the UK performs particularly poorly compared to international peers. 

According to Bright Blue’s research, the combined costs of housing and energy are 44 per cent higher in the UK than across the OECD average. 

This has hit poorer households much harder than richer ones, since they tend to spend a much greater share of their income on essentials.

The report found that low-to-middle income households spent 8.5 per cent of their disposable income on energy in 2023-24, up from 5.9 per cent in 2019-20. For households earning above the median income, the equivalent figure in 2023-24 was 5.6 per cent. 

And with regard to housing, the think tank found that the poorest quarter of the population spent just over a fifth (21 per cent) of household income on housing, three-and-a-half times more than the richest quarter. 

“While real incomes have stagnated for most income brackets in the UK, costs for low-to-middle income households have uniquely risen,” Bartek Staniszewski, head of policy of Bright Blue said. 

“Policymakers urgently need to focus on striving for plenty rather than just managing scarcity as a means of significantly improving living standards for low-to-middle income households.”

Lower house prices to boost living standards

To help improve housing affordability, Bright Blue suggested that Local Planning Authorities (LPA) should not be able to block housing developments unless a Local Development Order (LDO) is already in place. 

Read more

Top investment bank: Starmer and Reeves left UK ‘no better off than they found it’

Keir Starmer and Rachel Reeves discuss the Great British Summer Savings scheme at a press conference podium with banners b...

An LDO is a planning document that specifies which types of development should be approved in a specific area, meaning that developers do not have to seek planning permission. 

This would dramatically curtail the ability of local councils to block new housing developments, and move the planning system much closer to a zonal system. 

The think tank also suggested that the government should commit an extra £163m annually towards the financing of 7,500 new planners in LPAs to help with capacity issues.

A quarter of planners left the public sector in the seven years up to 2020, according to the Royal Town Planning Institute, putting the system under significant strain. 

The government should also reform the Building Safety Regulations so as not to require buildings over 60m tall to have two staircases, a safety policy which has constrained the supply of new housing, particularly in London. 

On energy, Bright Blue said the government needed to take “urgent” action to try and decouple electricity prices from wholesale gas prices. 

The UK’s wholesale electricity market operates under a marginal pricing system, meaning the system price is set by the most expensive source of electricity, which is usually gas.

Gas set prices 88 per cent of the time in 2015, increasing to 97 per cent in 2021, even though it only accounted for 40 per cent of total electricity generation between 2017 and 2021.

“A government-backed Electricity Pricing Commission should be formed, sitting within DESNZ, to investigate alternative approaches and with the mandate to recommend an alternative model for the Government to adopt. The Commission should have the right to launch inquiries and be required to make its definite recommendation within three years of its formation,” the report said. 

Read more

Burnham’s cost of living push under threat as oil hits $100

Two men stand in the ocean with multiple oil tankers and cargo ships in the hazy distance.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • bright blue
  • cost of living
  • house prices
  • living standards
  • OECD
  • planning
  • think tank

Trending Articles

  • WPP slashes jobs as revenue continues to fall

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • Starling plans to ‘come out swinging’ in diversification bid

  • As it happened: Stocks rise despite new tensions in Strait of Hormuz; Oil price climbs

More from Morning Wire

  • Top investment bank: Starmer and Reeves left UK ‘no better off than they found it’

    Economics
    Keir Starmer and Rachel Reeves discuss the Great British Summer Savings scheme at a press conference podium with banners b...
  • Burnham’s cost of living push under threat as oil hits $100

    Markets
    Two men stand in the ocean with multiple oil tankers and cargo ships in the hazy distance.
  • Burnham promises to ‘build new economy’

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking at an event
  • Octopus tells Burnham to ‘cut bills’ with £189 energy plan

    Politics
    Andy Burnham engaged in discussion with Goalhanger, highlighting key insights and perspectives in a dynamic news setting.
  • Vance says ‘broken’ Britain must rebuild economy, not just change PM

    Politics
    Andy Burnham returns to Parliament
  • Media Release: Financial Worries Rise and Match Health Concerns as Cost-of-Living Pressures Mount in 2026

    Business Wire
  • Wealthy Brits fear Burnham tax consequences

    Personal Finance
    Andy Burnham, Mayor of Greater Manchester, speaking at a podium with microphones.
  • Andy Burnham pledges ‘cost £63bn’ – and tax ideas could backfire

    Politics
    Andy Burnham smiling in a bus drivers seat, wearing glasses and a suit, addressing transport pledges.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook