UK could see ‘catastrophic’ cost of living rise in 2022

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The next year the British would be greatly affected by the increase in energy prices and taxes. This comes from a study by the think tank Resolution Foundation, which declares, neither more nor less, a ” Destruction at the cost of living.

the study Don’t go four ways: 2022 will be the year for the British when the post-Covid crisis is most felt and it is in the spring that promises to be particularly difficult. Prices will continue to rise, especially for energy. Inflation was announced in April at 6%, its highest rate since 1992.

Taxes will also increase simultaneously: an increase in the housing tax, the VAT rate for hospitality and accommodation. Dividend tax rates should also be increased.

These combined effects would have financial implications of the order of £1,200 per family per year. Salaries will continue to stagnate, should they remain at their current level by the end of next year.

government will have to compensate

This situation will particularly affect low-income households, who are most affected by rising electricity bills. To compensate for what the study does not hesitate to call genuine. Destruction At the cost of living for the British, the Resolution Foundation believed that the government would have no other option but to compensate by lowering taxes and lowering the cap on energy prices.

^ To listen and read: The British economy: a delicate recovery against a backdrop of shortages and inflation [Aujourd’hui l’économie]

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