Berliner Boersenzeitung - Incoming UK prime minister Truss faces a country in crisis

EUR -
AED 4.095102
AFN 72.480008
ALL 90.801688
AMD 402.807486
ANG 1.995737
AOA 1023.635334
ARS 1721.721299
AUD 1.61933
AWG 2.007127
AZN 1.900047
BAM 1.955836
BBD 2.250342
BDT 139.162586
BGN 1.948955
BHD 0.422108
BIF 3342.96213
BMD 1.115071
BND 1.431727
BOB 13.402249
BRL 6.138357
BSD 1.117321
BTN 104.873949
BWP 15.391286
BYN 3.345962
BYR 21855.38619
BZD 2.247142
CAD 1.573644
CDF 2586.964483
CHF 0.914162
CLF 0.027822
CLP 1094.980351
CNY 7.444774
CNH 7.438418
COP 3608.76707
CRC 506.709417
CUC 1.115071
CUP 26.815498
CVE 110.267049
CZK 24.346956
DJF 198.963698
DKK 7.480457
DOP 67.891262
DZD 151.940824
EGP 59.957114
ERN 16.726061
ETB 183.378708
FJD 2.526309
FKP 0.833961
GBP 0.834166
GEL 2.893653
GGP 0.833961
GHS 13.055243
GIP 0.833961
GMD 83.077063
GNF 9896.183924
GTQ 8.538159
GYD 234.234353
HKD 8.744429
HNL 30.029558
HRK 7.547925
HTG 146.432722
HUF 363.51345
IDR 20192.258205
ILS 3.552538
IMP 0.833961
INR 104.716854
IQD 1693.83148
IRR 2108992.359359
ISK 136.919964
JEP 0.833961
JMD 177.323296
JOD 0.790629
JPY 176.710877
KES 145.192698
KGS 97.510486
KHR 4552.084602
KMF 492.86165
KPW 1003.563608
KRW 1520.737678
KWD 0.346765
KYD 0.931217
KZT 500.809308
LAK 25136.46717
LBP 100053.859534
LKR 371.556906
LRD 189.94353
LSL 18.477643
LTL 3.292514
LVL 0.674496
LYD 7.150133
MAD 10.921803
MDL 19.971371
MGA 5077.094359
MKD 61.556144
MMK 2341.311039
MNT 4015.078679
MOP 9.019368
MRU 45.108838
MUR 52.442198
MVR 17.176258
MWK 1937.436008
MXN 20.766565
MYR 4.528864
MZN 71.257178
NAD 18.477643
NGN 1502.23485
NIO 41.120764
NOK 10.548462
NPR 167.798119
NZD 2.015128
OMR 0.428348
PAB 1.117421
PEN 3.848972
PGK 5.092095
PHP 70.369926
PKR 309.016043
PLN 4.399568
PYG 6984.129802
QAR 4.084276
RON 5.343646
RSD 117.622186
RUB 91.352798
RWF 1649.13065
SAR 4.188587
SBD 8.974739
SCR 15.358485
SDG 670.719139
SEK 11.033072
SGD 1.430306
SHP 0.835103
SLE 25.591287
SLL 23382.48045
SOS 638.511867
SRD 41.908265
STD 23079.712667
STN 24.500455
SVC 9.776182
SYP 14498.149201
SZL 18.471343
THB 37.411034
TJS 10.307092
TMT 3.902748
TND 3.343362
TOP 2.684822
TRY 55.9111
TTD 7.577141
TWD 36.546782
TZS 2952.454872
UAH 50.616941
UGX 4570.084937
USD 1.115071
UYU 44.950835
UZS 13332.247784
VES 999.456181
VND 28526.296796
VUV 133.25575
WST 3.108617
XAF 655.957
XAG 0.021465
XAU 0.000274244363
XCD 3.013535
XCG 2.013637
XDR 0.788413
XOF 655.957
XPF 119.331742
YER 263.853652
ZAR 18.420333
ZMK 10036.978597
ZMW 22.703422
ZWL 359.052318
SSP 6406.644798
MXV 2.33632
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

Incoming UK prime minister Truss faces a country in crisis
Incoming UK prime minister Truss faces a country in crisis / Photo: Niklas HALLE'N - AFP

Incoming UK prime minister Truss faces a country in crisis

The UK's new prime minister, Liz Truss, takes power following a "summer of discontent" and as Britons tighten their belts in response to double-digit inflation and soaring energy costs.

Text size:

"We have a historically huge shock to the cost of living and incomes," said James Smith, research director of the Resolution Foundation think-tank.

"The next prime minister will have to focus on the current crisis from day one."

Workers from refuse collectors to lawyers have for several months been joining picket lines to push for higher pay.

The strikes have won widespread support but at the same time infuriated some people caught up in train cancellations, overflowing bins and empty shelves.

The industrial unrest comes as drought in England and Wales, exacerbated by climate change, has parched crops, sparked wildfires and caused trees to shed leaves early.

But many households are already shivering in anticipation of a winter of massively hiked energy prices.

"It's summertime in the UK but the living is anything but easy," quipped the Financial Times.

"Almost nothing seems to be working in Britain," wrote The Economist magazine, adding: "It could get worse".

- Inflation impact -

The Office for National Statistics this month said its consumer price index had risen 10.1 percent in the year since July 2021, the highest jump in 40 years.

The cost of food and non-alcoholic drinks has risen most sharply, with the biggest price hikes basic foods such as milk, cheese and yoghurts.

This comes as inflation has created the steepest fall in real-term wages in two decades, hitting those on lower incomes the worst.

"These price rises have made the country worse off and many or all of us will ultimately lose out as a result," said the respected Institute for Fiscal Studies (IFS) think-tank.

In a sign of growing poverty, the number of children eligible for free school meals is up almost 1.9 million since 2021.

- 'Real hardship' -

Meanwhile, the UK energy regulator is shortly to allow suppliers to charge consumers vastly more, to reflect high global wholesale prices.

The UK has some of the least energy efficient and oldest homes in Europe and a slow rollout of green technology such as heat pumps.

High bills will hit people across society but particularly those on low incomes with high energy needs, said Smith of the Resolution foundation, citing large families and people with disabilities.

"I think we are going to see real hardship and even destitution," he warned.

The poorest in Britain often use pre-payment meters, meaning they cannot spread energy costs across the year.

The Resolution Foundation has proposed a 30-percent discounted "social tariff" for low- to middle-income households.

While Europe is also experiencing a big energy shock and the US is seeing its economy overheat and high inflation, "in a way we've got the worst of both worlds", said Smith.

The University of York has estimated that two-thirds of UK households will be in "fuel poverty" by January -- paying over 10 percent of net income on energy.

Experts warn of severe consequences.

"In a matter of weeks, many more parents are going to be facing impossible choices between eating or heating.

"Yet we still do not yet have a plan from the UK government that recognises the urgency or scale of this energy price crisis," said Dan Paskins, director of UK Impact at Save the Children.

- Industrial action -

In a "hot strike summer", numerous sectors are demanding pay rises equal to inflation -- rail and bus workers, dockers, postal workers and even criminal lawyers.

In Scotland's capital, Edinburgh, council workers who remove rubbish timed a stinking strike to coincide with the city's globally famous arts festival.

Dockers have walked out at the major container port of Felixstowe, in eastern England, in a move set to hit supply chains.

The rise in strikes has prompted right-wing media to draw parallels with the 1970s, when nationwide strikes were widespread.

The National Institute of Economic and Social Research think-tank stressed, however, that "the strikers in 2022 ... are operating from a position of weakness".

Only about 23 percent of the workforce is now represented by unions, it said.

Due to Brexit, Covid and other factors, the labour market is tight, with fewer workers than jobs.

This has hit sectors such as airports, which let specialised staff go during the Covid pandemic, resulting in long queues for holidaymakers and flights scrapped from schedules.

(Y.Berger--BBZ)