TUC – Bank of England must “keep going” with rate cuts so Britain can move on from living standards crisis
Commenting on the latest inflation figures showing CPI inflation showing a small rise to 3.4% in the 12 months to December 2025 from 3.2% in November 2025, TUC General Secretary Paul Nowak said:
“Workers urgently want to see their living standards improving. The government acted to put more money back into people’s pockets with reductions in energy bills, a freeze on rail fares and prescription charges as well as hiking the minimum wage in the Budget.
“But more must be done. Ministers must stay laser-focused on cutting costs and supporting family incomes.
“And the Bank of England must keep going this year with more interest rate cuts in the months ahead.
“Inflation is still lower than the Bank expected in November, and the small rise on the month is a result of one-off factors.
“More rate cuts would help families spend, businesses invest, and make sure Britain finally moves on from the living standards crisis that’s kept us stuck in the doldrums for too long.”
- RPI inflation rose to 4.2% in December from 3.8% in November
- ONS report: “The largest upward effect came from air fares, which rose by 28.6% in December 2025. However, air fares rose by 16.2% last year, the third-lowest December rise since monthly price collection began in 2001. Part of the reason for the lower-than-usual growth in 2024 may have been because the return date for European flights in December 2024 was Christmas Eve and the return date for long-haul flights was New Year's Eve. In contrast, the return date for European flights in December 2025 was 23 December and the return date for long-haul flights was 30 December.”
- About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.3 million working people who make up our 47 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
Contacts:
TUC press office
media@tuc.org.uk
020 7467 1248
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