Despite a stream of leaks and speculation, all eyes are still on the forthcoming Budget, which will be a litmus test for the government's ability to soothe fiscal pain rather than exacerbate it. The economic backdrop remains stark, with recent data from TMC painting a concerning picture of rising household debt and dwindling savings. A surge in borrowing has pushed the average household debt, including mortgages, to almost twice the average UK salary. Furthermore, this debt burden is exacerbated by a significant decline in savings from pre-crisis levels as households struggle to build financial resilience.

Despite moderating inflation, the aftershocks of the cost of living crisis continue to impact families across Britain, with the cumulative impact of sustained price increases exerting unmanageable cost pressure. Chancellor Reeves must walk a political tightrope, attempting to balance fiscal responsibility with the need to address an ongoing financial struggle for UK households.