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| Rishi Sunak and Liz Truss clash on how to tackle the economy (Image: HampshireLive) |
It appears the UK has a government who has a 'wait-and-see' attitude on the British people's finances and an opposition leadership who won't do much to show solidarity to those who are feeling the pinch because Labour isn't a 'party of protest'. Of course, very few of us thought that is the case, but one thing is for certain - this is the summer of discontent and we'll soon to have a tumultuous autumn and winter.
Let's summarise where we're at. In April, energy bills shot up as was forecasted. The rise was a shock to the system and on a personal level, I've noticed how bad it's been, even during the warmest days (judging by my smart meter alone). Every other bill has gone up too; including food and fuel. These out of control costs are reflected on the rate of inflation which is edging towards the 10 percent mark - pretty unprecedented. It's also not a matter of if, but when, Britain enters into a recession.
As inflation reaches record levels, companies feel unable to fulfil any expectation to raise employees' salaries to above that rate due to the fear it could cripple industries. Too many are counting their pennies and it's therefore come to little surprise to see a number of unions take action. Those representing rail workers have gone on strike for a number of days, and will continue to disrupt in the coming weeks. Postal workers are doing the same and there are talks of teachers and NHS nurses following suit.
The government response has been sparse to say the least, even before Parliament broke up for summer recess. There has been little talk between Westminster and the unions to sort the issues out; either that neither party want to meet in the middle or are refusing to budge. They are narrow-mindedly focusing on solely ensuring their demands are met.
Labour's response to the strikes has been lacklustre too. Party leader Keir Starmer had said that his shadow cabinet should not join picket lines, at least without his knowing. One, Sam Tarry, had already defied his request and also took part in media interviews. He was shown the door, which certainly split opinion from users on Twitter. The consensus was while he shouldn't have done what he'd done, some wonder why aren't Labour doing enough to physically show support to those protesting. I feel that Starmer will need to change his tune as more strikes take place. There are only so many strikes he can react by repeating the same line. He may need to do this sooner rather than later, otherwise he risks the unions to no longer support the party, which could be highly damaging for Starmer.
Starmer has an open goal here, yet is missing the target when it comes to the strikes. At a recent address, he said that he'll be there to support workers and get what they want... once Labour is able to be in government. It's a frustrating response because not only the next general election is in the next two years, but he's assuming that Labour will gain power, regardless of when Britons go to vote. Sure, current figures are looking good for the party in red. Yet, this can drastically change in a matter of moments, perhaps even from as early as this September, with a new Conservative Prime Minister to be confirmed.
Now, I'd been abroad for the first eight days of August and before then did well to keep up with all the debates and interviews both Liz Truss and Rishi Sunak had performed. But they're happening on an almost daily basis now, I've lost count on what they have and haven't done. It's been an intense summer where they've been in full-on election mode; coming up with so many bold promises, proposals and statements. These have been dissected by social media users and genuine economic experts and judging by particularly the latter, whoever wins the leadership race, we've every right to be nervous.
Regarding the cost of living crisis, Truss and Sunak's views on how to tackle this are incredibly wide ranging. Truss wants to reverse the national insurance hike introduced by Sunak, Chancellor at the time. Sunak is willing to offer similar financial packages he brought forward just months ago. There is, however, little focus on trying to find ways to reduce the costs of gas and electricity, which is where the underlying issue is. Put extra money in our pockets and they will instead go towards rising rent or mortgage costs, loan interests, broadband and food. The support barely touches the edges. Energy companies need to do more. Ofgem needs a backbone. Westminster needs to spend less time shrugging shoulders and communicate with those responsible.
I see why the UK government won't want to commit today. Current Chancellor and Prime Minister, Nadhim Zahawi and Boris Johnson, have reportedly met with energy firms, however, this time next month, we may see another Chancellor and definitely a new Prime Minister, both potentially offering completely different approaches. There's a lot of uncertainty and whether it's Truss or Sunak, they will not have enough time to prevent the high gas and electricity costs in October, let alone try and prevent the expected additional costs in January 2023. I mean, Sunak had the opportunity before the April hikes and couldn't (or wouldn't, depending on your feelings on it).
The cost of living crisis is global. Britain isn't alone in regards to seeing the rising costs of energy and fuel. Yet, without acting competitive, it appears we have it pretty bad in comparison to countries like Germany and France, whom we should benchmark ourselves against. And I've not even addressed other challenges that could help Britons ease their burdens such as tackling climate change, the need to address increasing waiting times for hospital treatment and affordable homes, as well as to ease the impact and tensions on the back of the UK dropping the European Union membership. Starmer may rule out trying to re-enter the single market or customs union now, but I strongly feel that he may want to clarify how else Britain can remain close to the EU and stop the bickering we're seeing today. It can be achieved while not being a member.
All this matters because these issues are intertwined. The global economy needs to move at pace and cannot fulfil its potential without; acting on the clear vision to invest in cheap, clean energy; without frictionless trade; and without rising number of sick people dying of preventable illnesses. I'd be more than happy to change my boiler for a heat pump, yet an up to £6,000 discount won't go even close to achieve this, considering the current cost of one. I'd also be more than happy to rely solely on solar and wind energy. We're seeing abnormally high outdoor temperatures, and they're occurring more often - we may as well take advantage of it by storing it to heat our homes during the winter in an affordable way. The last thing the UK government wants is more people in arrears for things they shouldn't be in arrears for. They are on the brink of losing the livelihoods they need to function. So, to Labour and the Conservatives; cut the buzzwords and proactively show you care.
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