Families in the UK could be £1,200 poorer this time next year as fears are growing that a crippling recession will hit the economy within the next 12 months. This would have serious effects on people's bank accounts.
Households may face being £1,200 worse off according to the Office for Budgetary Responsibility. The Birmingham Post reported that they warned: “Many threats remain, with rising inflation potentially tipping the economy into recession, continued uncertainty about our future trading relationship with the EU, a resurgence in Covid cases, a changing global climate and rising interest rates all continuing to hang over the fiscal outlook.”
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The Treasury Minister, Simon Clarke responded: “The government is ensuring it continues to support people and the economy in the face of global pressures and uncertainty while reducing debt.” Labour’s Shadow Chancellor Rachel Reeves also commented: “We need a serious plan for growth and a stronger, more secure economy."
It comes amid skyrocketing bills for households, with energy prices soaring and yet another price hike cap this October. There are also soaring food bills in supermarkets for many.
Others are dealing with rises in council tax and National Insurance contributions. Inflation, too, has soared in recent times, with warnings of crop shortages amid a crisis in Ukraine after Russia's attack.
The latest report from the Office for Budget Responsibility (OBR) deals a blow to the hopes of Boris Johnson's potential successors to promise a raft of tax cuts in response to the cost-of-living crisis.
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