Whatever is happening to our economy? I don’t really get too bogged down in politics but just want to understand the financial implications of what is going on.
First, we had the soaring cost of gas and electricity. Here the heating remains off, the boiler has been turned down, batch cooking is the order of the day and fewer lights are on. We were all grateful for the promise of help with our energy bills but realised it is going to create massive debts for the country.
Then we have increasing inflation. All those national debts are getting more costly and seem to be likely to last for years/decades. Presumably, they’ll be paid off through tax, even though HMRC will be collecting less?
Meanwhile, inflation is increasing the cost of mortgages (if you can get one) and rent. Presumably, house prices risk taking a hit as fewer people can afford to buy.
Then there’s the rest of the cost of living being hit by the £ dropping like a stone. All those everyday things that are imported will cost more.
At the same time, we all know that public services such as the NHS, schools and colleges, the police and more are struggling to deliver the bare essentials. There seems to be a strong argument to making them more effective which is likely to cost more.
If we are facing difficulties just to pay the basic bills (even with those modest tax cuts and other help), how are we going to spend money that will create growth? Will there be anything left in the piggy bank?
I’m not sure if the whole idea is to have a Great British asset sale when the houses, businesses and public sectors become so cheap that they attract investors from abroad who get even more value due to currency exchange rates?
Meanwhile, it does seem that some people will be keeping more of their earnings which presumably enables them to avoid all those stretched public services and simply go private.
It would truly be useful to have some idea of what is going on and where this country is going to be in a few years. Presumably, there are some great economic gurus out there with much more knowledge who can explain the way ahead. We do need to know and understand how our labour, earnings and spending play a part in the Great British economy Otherwise, we just feel like mushrooms …
Does anyone have the answer?