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It is hard to think of another day – certainly one outside a recession – when so much bad economic news came in one single torrent.
Energy bills up by £700 (with more to come thereafter), interest rates raised, inflation set to exceed 7% for the first time in a generation and now households expected to face the worst year for their post-tax disposable incomes since, well, pretty much ever.
It is a deeply depressing economic cocktail, and while the chancellor’s measures are intended to reduce the pain somewhat – especially for lower income families – the most depressing thing is that there is only so much that can be done.
Reaction to Sunak’s help for households – follow live
For the reality is that Britain is locked in the very same flavour of crisis being faced not just here but across much of the world.
It is going too far to say this is “just” an energy crisis. There are all sorts of other things going on: the post-COVID recovery (and our consequent fiscal indebtedness), this country’s adjustment to Brexit, the impact of higher taxes and continued tightness in welfare spending.
All these factors contribute to what we’re facing right now. But ultimately, above all else, yes: this is an energy crisis.
And an energy crisis is an everything crisis.
Higher household bills – that’s energy. Higher food prices – that’s energy (after all, most nitrogen based fertiliser is made using, guess what, natural gas). Higher goods prices – that in large part is energy, since most industrial processes are deeply dependent on power and fuel. Higher transport costs – ditto.
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Source : skynews
