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<p>Consumer and business confidence is intrinsically linked to the broader economic
outlook. To sustain consumer confidence, consumers need to feel assured that their
government is taking the long-term decisions necessary to strengthen the economy and
build a brighter future.</p><p>Promoting macroeconomic stability is central to the
Government’s economic priorities. In January 2023 the Prime Minister set out three
economic priorities: to halve inflation, grow the economy and reduce debt. Progress
is being made against all three of these:</p><ul><li>Inflation is less than half its
peak.</li><li>Economic growth has been resilient, and the economy is now expected
to grow in every year of the forecast period, as assessed by the OBR in their recent
forecast.</li><li>Debt is forecast to fall as a proportion of GDP over the medium
term, with greater headroom than at Spring Budget 2023.</li></ul><p>Consumers are
directly benefitting from the responsible approach taken to prioritising economic
stability and making work pay. The cut in National Insurance contributions means the
average worker on £35,400 will receive a tax cut in 2024-25 of over £450. From 1 April
2024, the National Living Wage (NLW) will increase by 9.8% to £11.44, representing
an increase of over £1,800 to the annual earnings of a full-time worker on the NLW.</p>
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