The electricity and gas bills hiked up by almost 100% because of Russiau2019s stoppage of supply.
If thatu2019s not enough for economic turmoil the pound hits a record low of 24% decrease against the dollar. Readers this is a scenario of the energy crisis, debt crisis, housing crisis, and banking crisis all at the same time.
Let us find out what led to this happening and what are the steps UK government is taking to overcome it.This story dates back to September 30 when the UK was affected by the energy crisis because of the less supply of oil and gas in the country.
The winter is the peak time for electricity consumption and the country just has storage of energy which would last for only 90 days. This is a disaster because at the peak time there is not an adequate supply of electricity which eventually led to an increase in the cost by at least 80%.
The then Prime Minister of the UK, Lis Truzz came up with a mini-budget plan which in turn was a disaster for the economy of the nation. She introduced a cap of 280 pounds/Mwh which increased to 520 pounds/Mwh soon. The cap leads to losses to producers, overutilization of energy by the rich and ultra-rich, and the poor paying much of their income on necessary electricity.
Source:- BBC
Also, Lis Truzz made some tax cuts that were highly disapproved.We also now need to understand the political crisis of the UK.
In 2019 Borris Jhonsonu2019s Conservative party won by a majority and he was elected as the prime minister of the UK. But he lost the trust of the people because of various scandals like the party gate scandal. He eventually resigned himself from the post of PM. After him, Lis Truzz became the PM and in just 44 days she was also forced to resign. On 24th October 2022, on the day of Diwali, Rishi Sunak of Indian origin was declared the new PM of the UK. In just three months we saw 3 new PMu2019S.
Although we Indians are proud of Rishi, the citizens of the UK are not happy with the decision. Because Rishi is the richest member of the parliament so the people think will be able to solve common peopleu2019s problems.
What do you think will Rishi Sunak be the straw to the drowning UK?
