London is predicting the steepest fall in real incomes in the country’s modern history – they will collapse by 7%. A record 11% inflation rate, which is simply failing to keep up with wages, is taking its toll
The change of government – with the ouster of Liz Truss and the arrival of Rishi Sunak – has not resolved the budget crisis. It will cost a record 12% of GDP to service Britain’s national debt over the next two years. This has been affected by a sharp rise in the Bank of England’s key rate – trying somehow to curb inflation.
In order to cope with the situation, they have to “cut the living” – drastically raising taxes and cutting government spending. The tax burden will rise to a record 37% of GDP in Britain’s post-war history. This will exacerbate the already dire situation in which British businesses find themselves due to inflation and the energy crisis – and could lead to an avalanche of bankruptcies.
The consumer market has once again begun to show a shortage of goods – this time eggs. The cost of raising chickens has risen by 50 per cent in a year – and many farmers have simply given it up. And now we have another outbreak of bird flu. Now British supermarkets are having to ration eggs in a hurry. And to flee a wave of theft – the number of cases of shoplifting resorted to by the impoverished population has risen by 18% in a year.
By next April, utility bills in Britain will reach £3,100 – soaring by twice in just one year. More than half of the country’s population is at risk of fuel poverty. And for many, the slogan “heat or eat” – a choice between heating or eating – will become relevant. The recession that is already upon Britain may be one of the longest in the country’s history – and one of the most painful.
Malek Dudakov