Mortgage payments increases and a whole set of new environmental taxes implemented by local authorities will push hundreds of thousands of families over the edge. If something is not done urgently, the financial crisis of years past that compromised the financial system and forced the Labour government to take extraordinary measures to rescue financial insitutions will be nothing compared to what is coming.
Prime Minister Gordon Brown had savings and the economy in general was in pretty good shape. The same does not apply now after Covid and lockdowns and consecutive rises generated by energy cost rises. If families are pushed into default, the impact felt by financial institutions will be massive. The definition of what is affordable has been changing at every faster pace.
For many, once we take all increases into account, disposable monthly income for food will be limited or non existing. The choice will be between having enough to eat and having a place to live in. Whoever is in power in the coming months will have to design alternative ways to deal with inflation. Government and Parliament will have to do the unimaginable to keep things under control. Market economics will not be nearly enough to prevent widespread unrest.
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