As the Downing Street saga over the Prime Minister’s possible resignation continues, the real drama is the cost of living crisis.
Last week, the Bank of England raised interest rates for a second time, as fears grow over galloping inflation.
Inflation is heading for 7% and new interest rates will mean an extra £25 per month on a tracker mortgage while loans and credit purchases will also be more expensive.
Experts predict a further rise next month.
Even if this doesn’t affect you immediately, no one can have failed to notice increases in the cost of things like food, childcare and petrol.
If all that isn’t bad enough, we’re about to be hit with a massive rise in energy bills just as we approach the coldest part of winter.
Ofgem, charged with protecting consumers, has decided to raise the price cap, making bills more expensive.
The average family will now need to find another £700 per year for gas and electric.
The Chancellor says he expects bills to increase further in the autumn.
It might make sense if oil and gas companies were having a really hard time but Shell have just announced profits for 2021 of £14.2 billion and BP £9.4 billion, their biggest for eight years.
Shareholders and company executives must be rubbing their hands with glee.
Labour has suggested the Chancellor cut VAT on domestic fuel, which Boris Johnson promised if we left the EU, and tax the oil and gas profits, to reduce our bills.
Instead, the Chancellor has decided to borrow money for the energy companies and for them to then loan it to us.
I’m not sure you need to be an economist to smell a rat.
Shareholders get a whopping dividend while we end up paying more for our gas and electric as well as funding the Chancellor’s cunning plan to plunge us all into debt.
It’s like he’s become Wonga Man overnight.
I know his mind might be on a vacancy at No 10 but our Chancellor should be focussed on the cost-of-living crisis and dealing with these energy companies.
We shouldn’t be subsidising them.
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