Britain’s economy is taking a drubbing
Rising energy bills will be the principal source of pain
Britain’s economy needs to become a lot more productive. But first it has to get through the winter. The big problem is the spiralling cost of living. Last week the Bank of England predicted that annual inflation would rise to just over 13% this October. At least of 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, 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.
This article appeared in the Britain section of the print edition under the headline “Electric shock”
Britain August 13th 2022
- Almost nothing seems to be working in Britain. It could get worse
- Britain’s economy is taking a drubbing
- The port of Dover is vulnerable to delay and disruption
- Stop-and-search is on the rise again in Britain
- Better measurement would help reduce water consumption
- Rising interest rates will split the Conservatives’ electoral coalition
From the August 13th 2022 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Britain
Britain’s brokers are diversifying and becoming less British
London’s depleted stockmarket is forcing them to change
What a buzzy startup reveals about Britain’s biotech sector
Lots of clever scientists, not enough business nous
Britain’s government lacks a clear Europe policy
It should be more ambitious over getting closer to the EU
The Rachel Reeves theory of growth
The chancellor says it’s her number-one priority. We ask her what that means for Britain