The UK Government needs to get its head out of the sand, says NicolaSturgeon
about the ongoing investigation are entirely understandable and justified. But amidst them – and across the UK, the headlines about Boris Johnson’s lying to Parliament over Covid lockdown parties – there are some important issues that perhaps get a bit lost. These are likely to become extremely serious for people across the country in the months ahead.
The main issue I want to talk about this week, though, is the economy. We all know that Covid had a big impact on the economy. But that doesn’t explain the depth of the economic trouble that people across the UK, much more than in other countries, are feeling the impacts of just now.Inflation in the UK is higher – and more stubbornly so – than in many similar economies.
The ill-fated and short-lived premiership of Liz Truss, and the disastrous ‘mini budget’ that she presided over, was a factor. She plunged an already fragile economy into deep turmoil. Higher interest rates will compound the cost-of-living crisis. They may also push the UK economy into recession.Mortgage lenders, anticipating the likelihood of high interest rates over a sustained period, are already pushing rates up and withdrawing some products from the market.
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