Britain has emerged from the epidemic with many economic signs shining. The UK’s economic prospects have plummeted this year and the following as a result of Russia’s invasion of Ukraine, an unresolved EU divorce settlement and global closure hit many businesses.

Following the departure of Boris Johnson, the new government should free itself of the strain that former Chancellor Rishi Sunak is spending money to address the high cost of living in families and prevent a financial collapse and additional support for businesses.

Here are the major financial issues that the cabinet must face.

Rising prices

Consumer prices rose from almost zero during the epidemic to 9.1% and are expected to rise above 11% by October as electricity prices rise to push gas and electricity bills by more than $ 2,800 a year.

Many economists believe that inflation will decline next year, but their predictions depend on the end of the war in Ukraine.


Brent crude almost doubled in price to $ 128 a year before Russia invaded Ukraine, before returning – it was $ 102.5 on Thursday.


Britain suffered the worst financial collapse (GDP) since the early 19th century when the recession hit April 2020. It recovered rapidly, but recovery slowed down this year as the global economy began to recover. stuttering.

The UK imports more than half of its food intake, which makes it one of the most vulnerable in the world.


The following GDP figures, for May, are expected to reflect the third consecutive month of decline. The UK economy is 0.9% larger than it was in November 2019.

Tax assets

Officials are facing pressure from Tory MPs to change Johnson’s idea of ​​raising taxes on businesses and families across the parliament to pay for expenses during the epidemic.

However, the increase in taxes remains small, especially as many of the Conservatives are urging the government to increase the security budget in the face of a new threat from Russia.


The potential for further economic instability as well as the growing number of older people will also increase the demand for money from the exchequer.

UK business

France and Britain have been following each other for decades in charts highlighting the importance of trade as part of GDP.

The global recovery after the epidemic last year lifted all the boats. However, recent statistics have shown that British trade has stood the test of time as France has become more prosperous. Brexit has been criticized by many economists for its instability in the UK.


In a recent review, the Institute of Export & International Trade said total exports fell to the UK by 2% since last month, “reflecting the challenges businesses face due to the epidemic, trade crisis, Russia-Ukraine conflicts and Brexit”. .

UK staff

Government estimates show that the UK has less than 1.2 million workers in 2022 than expected in 2019.

Many EU workers returned home during the epidemic, retired workers and thousands of students returned to training.


David Miles, chief financial adviser at the Office for Budget Responsibility, said it was likely that older workers and more students had returned to the job market, but it was reasonable to judge that the UK had declined, leading to unemployment. other industries.

Brexit and Covid have also stepped in to reduce the number of job seekers, raise wages and prevent recovery.

R&D money

Scientific costs have dropped and the promise of increased funding for research and development remains the same – a promise.


Sunak planned to increase UK R&D revenue to 2.4% of GDP, up from 1.74% last year. France already loses 2.2% of GDP, US 3.1% and Germany 3.2%. The Chancellor initially wanted to achieve this by 2025, but earlier this year he pushed for a date in 2027.

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