The inflation figures released this week paint a very contradictory picture.

There is a real danger of entering a world of falling prices, wages and production. But at the same time, food, public transport and council tax costs are still going up and living standards are being squeezed for many people on low incomes.

The Government must use next month’s Budget to cut taxes for low earners. These cuts must be fully funded by closing the tax loopholes which only benefit the wealthy.