Economists warn UK to face blackouts under Liz Truss energy plan September 8, 2022 Economists today warned prime minister Liz Truss’s decision to freeze energy bills for everyone in the UK at £2,500 raises the risk of blackouts. Experts at the economic think tank the Institute for Fiscal Studies (IFS) said energy supplies may run dry due to the government propping up energy spending. “Households, businesses or governments… will [...]
Liz Truss energy price freeze would peg inflation, BoE chief economist says September 7, 2022 LIZ Truss’s plan to freeze energy prices would prevent inflation from scaling to its highest level since 1980, but interest rates may have to stay higher for longer, the Bank of England’s top wonk said today. Huw Pill, the monetary authority’s chief economist, told the commons treasury committee that the new prime minister’s cost of [...]
Pound sinks to lowest level against US dollar since 1985 September 7, 2022 The pound today sunk to its lowest level against the US dollar since 1985, driven by investors sweating over the health of the UK economy and a borrowing splurge. Sterling fell to $1.1406 briefly today, marking another dismal milestone for the currency. The last time the pound fell that low was when Margaret Thatcher was [...]
Almost half of Brits stop saving and paying into pension due to short-term money problems September 7, 2022 Almost half of Brits have stopped saving, investing and paying into pensions because of short-term financial pressures. With soaring inflation, rising interest rates and an impending increase in energy bills, 46 per cent of those polled by NerdWallet say they’ve cut back on long-term money planning. Among those who are cutting back, 43 per cent [...]
Britain hurtling toward long economic slump and record living standards squeeze September 6, 2022 Britain is sinking into a long economic slump that will deal the biggest hit to household finances on record, a new report released today shows. A historic inflation surge led by sky-high energy bills is set to tip the country into a recession this year, wiping off £2,000 of Brits’ real take home pay, according [...]
Pound on crash course to record low against US dollar September 1, 2022 The pound is on course to plunge to a record low against the US dollar driven by the UK tumbling into a tough recession, City economists warned today. Sterling will drop to $1.05 by the middle of next year, but could fall close to parity with the greenback, according to consultancy Capital Economics. The downbeat [...]
Liz Truss or Rishi Sunak face once in a century living standards crisis September 1, 2022 Liz Truss or Rishi Sunak are set to oversee the steepest fall in living standards in a century after one of them enters Number 10 next Monday, a fresh report published today reveals. Brits are on course to be £3,000 worse off by the end of 2024 as soaring energy bills and inflation eat into [...]
Inflation could soar to over 22 per cent if gas prices stay high, Goldman warns August 30, 2022 Inflation could soar to the highest level since 1975 if global gas prices do not fall from their historic highs, a Wall Street investment bank warned today. The cost of living would climb to a peak of 22.4 per cent if the energy watchdog is forced to heap even more woe onto households by passing [...]
Brits ‘batten down hatches’ ahead of bleak winter August 30, 2022 Brits are “battening down the hatches” ahead of an exceptionally tough winter marred by sky-high energy bills, economists warned today. Households are cooling spending on credit cards and putting money aside in savings accounts to keep their finances intact to withstand a historic shock to their living standards. Brits spent £700m on credit cards last [...]
Bank of England may launch biggest rate hike since 1989 if energy bill support fuels inflation August 26, 2022 The Bank of England may have to launch the biggest rate hike since 1989 if the government injects huge sums of money into the economy to cope with the cost of living crisis, a Wall Street bank said today. Borrowing costs could rise 75 basis points in November to deal with a historic inflation peak [...]