Rishi Sunak, from Indian Punjabi decent has been the Prime Minster of the United Kingdom since 25th October, 2022. His role to lead the country has been extremely difficult due to economic-turmoil after taking over from Liz Truss who held office for just forty-nine days.
The cost of living for Brits is out of control. From what I understand it boils down to elevated inflation from high energy prices, as well as Brexit according to some has been a big influence though I’m not so sure, and recovery from the pandemic has been slow.
Additionally, companies downsizing via staff-cuts, and reducing overheads has meant the layoff of workers. Transport prices haven’t seen large increases while restaurants and hotels have hiked their prices, and recently aircraft companies have increased flight costs by twenty-percent year-on-year.
Poor old Rishi took on what many are saying is dire straits. In other words, he hasn’t got much of a chance of sorting out the big mess. With inflation at around 8% a year it stands to reason that he needs to get his act together and use all his American and English degrees and vast wealth of knowledge to turn the tide, so British tax payers are able to get ahead by reducing outgoings to stabilize their budgets.
Rishi Sunak has been accused of being out of touch with ordinary families after claiming the economy was looking up and people’s household incomes were “hugely outperforming” expectations despite the cost-of-living crisis. However, with motor fuel prices falling by 13.1% in the year to May 2023, the average petrol and diesel prices stood at 144.4 (R$9,00) and 154.6 (R$9,69) pence per litre respectively in May 2023.
According to the Economist rising energy bills will be the principal source of pain. They say Britain’s economy needs to become a lot more productive. But first it has to get through the winter. The big problem is the spiraling cost of living.
Last week the Bank of England predicted that annual inflation would rise to just over 13% this October. At least half of this increase will be driven by steep rises in energy prices, owing mainly to the war in Ukraine. Estimates from Cornwall Insight, a consultancy firm, suggest that households’ average annual energy bills could grow from £1,971 ($2,380) now, already a hefty increase on the prior year, to an eye-watering £4,427 in April.
Holding England’s basic interest rate of 5% a year might be difficult and the Bank of England may need to increase it slightly.
Have a great day!
Prof. Carl Boniface
Boils down (phrasal verb) = if you say that a situation or problem boils down to a particular thing or can be boiled down to a particular thing, you mean that this is the most important or the most basic aspect of it.
Layoff (n) = dismissal, redundancy, sacking, letting go, downsizing
Dire straits (n) = in a very bad situation that is difficult to fix: These kids are in dire straits, and the schools are doing nothing to help them!
Turn the tide (idiom) = reverse the general course of events
Eye-watering (n) = extremely surprising, because of being great in amount: “The oil giants' profits are eye-watering.” Or “Despite taking an eyewatering pay cut, he has no regrets about his career change.”