Mayor of London Sadiq Khan has called on the government to “get a grip” on the cost of living crisis, after energy prices were confirmed to rise by £700 this year.
A new energy price cap coming into effect in April will see customers paying an average of £700 more a year.
With runaway inflation, Khan warned on Twitter that 34 per cent of Londoners are struggling to pay their bills, while 13 per cent are relying on credit.
It comes as the Bank of England slashed its GDP forecasts in the face of rising inflation, which ratesetters at Threadneedle Street expect to top seven per cent in April.
That higher level of inflation, around two percentage points higher than previously expected by the Bank, will saddle Brits with the worst rate of real income erosion since 1990.
Retail bosses have also warned that the deepening cost of living squeeze may soon curb Brits’ spending habits, which would further bruise high streets following weaker pandemic trading.
Head of retail and wholesale at BDO Sophie Michael said on Friday: “With the cost of living set to continue to rise, many retailers may have expected a rocky start to 2022, particularly as they largely avoided significant discounts and promotions in January.
“Consumers, though, have defied expectations by continuing to spend heavily in discretionary categories. However, many will be asking how much longer this level of consumer spend can be sustained.”