Published on :
The partygate scandal is not the only reason for Prime Minister Boris Johnson’s discontent, the state of the British economy is also part of it. Inflation rose year-on-year to 9% in April 2022, a rate not seen since 1982 and is expected to cross 10% before summer. It is becoming increasingly difficult for British families to make ends meet and the prime minister is accused of not taking full measure of the crisis.
UK Finance Minister Rishi Sunak has announced a £15bn relief package for Britons, an improvement over February’s £9bn package. The money will be donated mainly to the most modest households and in the form of assistance of up to £1,200, which is equivalent to the average increase in energy bills expected this year. In early April, UK household electricity bills increased by 53%.
The government eventually resolved to tax the profits of the energy giants, returning to the principle of low taxation dear to the Conservatives. This is an extraordinary tax on the profits of gas and oil producers of up to 25% which makes it possible to free up 5 billion pounds.
The Labor Party welcomes the decision, which it has been demanding for months in the face of record profits from the region’s giants. BP thus announced a $5 billion profit in the first quarter, an unheard of ten years. British Oil boss Bernard Looney likened rising energy prices to a “cash machine” for his group.
At the same time, the danger of recession is becoming clear. The state’s economic data all point in the same direction. The GfK Consumer Confidence Index is at its lowest level since its inception, with retail sales stagnation and new car registrations, often seen as a reflection of consumer confidence; fell 11% between June 2021 and May 2022.
In addition to the difficulties associated with the current situation, there is Brexit, which further complicates supply problems. For example, semiconductor shortages are having such an impact on the automotive sector that some manufacturers are considering, if these difficulties continue, to move their factories out of the United Kingdom.
Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.