Brits Brace for ‘Perfect Storm' of Tax Rises, Spiraling Inflation and an Energy Crisis

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Brits Brace for ‘Perfect Storm' of Tax Rises, Spiraling Inflation and an Energy Crisis
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British households are facing the worst cost of living crisis for decades, as inflation, declining wages and an energy crisis eat into household incomes.

raised interest rates on Thursday

Sonali Punhani, U.K. economist at Credit Suisse, predicted that the Bank of England will tighten monetary policy further this year. Because of the U.K.'s reliance on natural gas as an energy source, the country has been hit particularly hard by a gas shortage thatBritish Finance Minister Rishi Sunak announced on Thursday that all residential electricity customers would be loaned £200 as a discount on their electricity bills from October, which will later be repaid in £40 installments over five years.

Jenny Blyth, who owns Storm In A Teacup Gifts, said via email:"For the first time in many years I'm scared." "It's the perfect storm right now, but [the government] is rudderless and out of touch," he said."As ever, the only companies doing well in the current climate are big businesses, while everyone else suffers."

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