The whole of Europe is suffering. Linflation and soaring prices of energy are putting a strain on citizens and businesses of all countries. But there is one that most of all risks collapsing under the blows of the crisis. And no, despite all the difficulties we are facing, let's not talk about Italy. But of the UK, which pays for the unfortunate decision to leave the European Union.
London is in disarray: in fact, those of the war and the pandemic are added to the consequences Brexit and by now, throughout the Kingdom, it is hard to find someone who still defends that referendum which, according to the propaganda of the time, was supposed to bring Great Britain back to splendor of the great empire, but which on the contrary is already showing all the negative economic effects that many had already predicted before 2016. The same leaders who fought for the leave 6 years ago - Johnson in the lead - today seem to have forgotten their promises of economic greatness , starting with those relating to the health system which (Farage dixit) thanks to Brexit should have benefited from billions of pounds (never seen before) more every year.
How is the UK doing? Much worse than us
The state of health of the former empire is anything but reassuring. According to the Bank of England, by the end of the year London will officially enter recession, coming out (perhaps) only at the end of 2023. In July inflation it has exceeded 10% and, according to estimates, it will reach 13,3% in the autumn to reach 18% in January 2023.
The comparison with other countries, despite the shared difficulties, is merciless. According to the forecasts of the International Monetary Fund – also thanks to the self-imposed isolationism with Brexit which has exacerbated the difficulties triggered by war, pandemic and inflation – next year the United Kingdom will record the lowest growth among the G7 countries, while according to the OECD, in the G20 only Russia will be able to do worse.
Record increases for utility bills
Eighteen months ago the average cost of utility bills for a typical household was around £950 a year. Today, with the outbreak of war in Ukraine, it is equal to 1.971 pounds. And the worst is yet to come. According to Ofgem, the energy sector regulator, energy bill prices will rise by an additional 80%, reaching a record 3.549 pounds despite the price cap, the limit on the price of energy set by the government which was supposed to make the energy market more equitable.
Rain of strikes throughout the Kingdom
The reality described above has violent repercussions on families and businesses. In July alone, 1.800 British businesses declared bankruptcy, 27% compared to July 2019 and according to the Federation of Small Business, if the situation does not change, there will be a rain of bankruptcies and layoffs. The workforce has shrunk by about 1 million people, the trade deficit hit a new record and exports, thanks to Brexit, fell much more than expected.
In this context the index that reflects the consumer confidence in August it dropped to minus 44, the lowest level for half a century, and more and more people are turning to Food Banks to try to make ends meet.
Meanwhile, all of the Kingdom is facing a wave of strikes never seen before before: from Edinburgh's waste collectors to railway workers, passing through London's tube and bus operators. On 5 September the lawyers will go on strike, from last week until 9 September the postmen of Royal Mail, while from 21 August the port of Felixstowe, which handles over half of the goods transport in the Kingdom, has been paralyzed by the protest of 2 workers. In the autumn it will be the turn of civil servants, with teachers leading the way.
How is politics reacting?
He's not reacting. Everything is at a standstill waiting for the September 5th, the day in which the Tories will elect their new leader who will automatically become Prime Minister in place of Boris Johnson. The battle is between the former chancellor of the exchequer Rishi sunak and the former foreign minister Liz Truss. Meanwhile, while the country is in disarray, photos of Johnson on holiday in Greece are featured in British newspapers.
