Rising inflation, high energy costs: Great Britain is in the middle of a crisis.
The exit from the EU has had a disproportionate impact on trade, said Swati Dhingra, a member of the Bank of England’s Monetary Policy Committee. The government, on the other hand, sees the Ukraine war and the corona pandemic as the main reasons.
Dhe British central bank has blamed Brexit for the poor economic situation in Great Britain. The exit from the EU has had a disproportionate impact on trade, Swati Dhingra, a member of the Bank of England’s monetary policy committee, told the House of Commons Finance Committee on Wednesday. The government of Prime Minister Rishi Sunak, on the other hand, cites the Ukraine war and the corona pandemic as the main reasons for the economic situation.
However, Dhingra stressed: “There is no denying that trade in the UK has weakened much more sharply than in the rest of the world.” Brexit prices went up and wages went down.
The British central bank had already warned after the Brexit referendum in 2016 that the British economy would shrink as a result of leaving the EU. The bank is sticking to this forecast, said central bank chief Andrew Bailey.
Minister of Finance Jeremy Hunt presents its new budget on Thursday. According to media reports, he is likely to announce tax increases and cut public spending by up to £60 billion (around €68 billion). Great Britain is currently struggling with significant economic problems, which is why the new budget deserves special attention. Inflation recently hit a 40-year high.
The relief and tax cut package put together by the previous government under ex-Prime Minister Liz Truss, which was to be financed with additional loans, caused panic on the financial markets and caused price slumps. The turmoil forced Truss to resign. The new head of government sunak has made fighting inflation its top priority.