In recent years, the UK private rental market has seen a surge in demand, and the average price of renting rising 40%. Yet it is the least favoured form of housing tenure, with many renters paying an increasingly unaffordable share of income on rent. The crisis costs the government £27 billion in housing benefits, leads …
Inflation in the UK rose to a 40 year record of 11.1% in Nov 2022 – why is inflation so high and will it come down soon? The last time inflation was so high was in 1981. But, inflation of the 1980s was different in that at least wages were keeping up with inflation. Now …
In September, the Pound plunged to its lowest level on record reaching a low of 1.03 during a day’s trading. The markets were spooked by the government’s unfunded tax cuts and likely £190 bn budget deficit. Investors viewed the Kwarteng/Truss budget as the shortest suicide note in history. Investors sold Sterling and UK bonds, creating …
Earlier this summer the Bank of England warned that the UK was heading into the deepest recession in a generation. Yesterday the Bank of England warned the UK was in the longest recession in a generation – a double gloomy prognosis to go with their record-breaking rise in interest rates by 75 basis points from …
Central Banks around the world are increasing interest rates because of concerns about inflation. However, the curious feature of this economic cycle is that Central Banks are raising rates, just as economies go into recession. Higher interest rates will, therefore, exacerbate the economic downturn and cause a deeper recession and higher unemployment. So why are …
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …
In 1974, the National Institute for Economic & Social Research made a report about the UK economy, concluding: “It is not often that a government finds itself confronted with a possibility of a simultaneous failure to achieve all four main policy objectives: adequate economic growth, full employment, a satisfactory balance of payments, and reasonable, stable …
Trickle down economics is a term used to describe the belief that if high-income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society. How the trickle-down effect may work in theory If the richest gain an increase in …