Britons are likely to experience the worst fall in living standards since at least the 1950s. Low-income families will see their budgets and purchasing power shrink year after year due to looming tax rises, as announced by the government to end emergency state aid to offset the rising cost of living and also because of the continued rise in housing costs.
The interest rate hikes pursued by the Bank of England will further and further increase the inability to access low-cost money, creating even greater financial suffocation for families servicing a home loan. This will lead many families to seek refinancing of their mortgage loans with better terms or to stop paying their mortgage installments dramatically increasing the size of non-performing loans in British commercial banks. The consequence of such a situation will be an ever-increasing social tension and increase in crime to the point where this social problem leads to the forced intervention of the UK government.
Any increase in middle-income families will further widen the gap between low- and middle-income families, promoting the creation of an even larger economic-social gap for low-income families.
In Britain the mobility of the social classes is zero and the decline in the standard of living and incomes of the working class has begun to escalate dramatically after the triple whammy of the pandemic, the war and the consequent inflation and of course the implementation of Brexit.
The governments of Boris Johnson and Rishi Sunak, who certainly bear the political responsibility for the situation that has arisen – even though they inherited the management of the dystopian Brexit from fellow Conservative Prime Minister David Cameron. Because Cameron had the “bright” idea of announcing a referendum to appease the anti-European populism of far-right Nigel Farage and Conservative Party MPs.
Cameron did not imagine the resonance that anti-European propaganda had with the British working class. Britain has left the EU and it’s exit is the primary reason why the income of a “typical household” is expected to be 4% lower in 2024-2025 than the previous five-year average.
The Conservatives will pay the price for the disastrous handling of their governments in recent years at the next general election, which will be held in early 2025 at the latest. elections, this social class to turn en masse to the Labor party, causing the Conservatives to lose executive power.
The decline in the standard of living of the vast majority of Britons is not stopped by the possible avoidance of the British economy slipping into a technical recession.
Development only in words
On Wednesday the British Chambers of Commerce (BCC) published a report, according to which “the UK economy remains on track to avoid recession”. The authors of the report point out that the possible avoidance of recession will not materially affect the majority of British citizens.
“With growth very close to zero for the next three years, even if there is typically no recession, the economic environment in the UK will still look like a recession for most people and businesses,” it said in a press release. Vicki Price, Chamber financial advisor.
