Prime Minister Boris Johnson came to power promising to give the UK a prosperous economy after leaving the European Union (EU). Now he is leaving. But the actual situation in UK is just opposite. The UK economy is extremely fragile due to fuel shortages and rising prices and record inflation. In such a critical situation, Boris can submit his resignation letter to Queen Elizabeth II next Tuesday. Before that, the name of his successor will be known on Monday.
Boris Johnson announced his resignation last July due to various controversies and criticisms including breaking the rules during the corona virus. After this, the process of selecting his successor began. After several rounds of voting, his government’s foreign minister Liz Truss and former finance minister Rishi Sunak have finally survived the race to become the prime minister of the United Kingdom. One of them will have the last laugh.
Boris Johnson became Prime Minister in July 2019. Over the next two years, he had to deal with the shock of the Corona pandemic and the war in Ukraine. Due to the impact of these, the economy of the United Kingdom is in extreme crisis. Inflation in the country is now above 10 percent. The rise in food and fuel prices has left people breathless. Bus-train-port workers went on strike due to rising cost of living. The British pound fell to its lowest level in more than two years against the dollar.
The biggest worry for the UK people right now is the rising cost of fuel. Oil and natural gas prices have risen due to reduced supply from Russia due to the war in Ukraine. It will increase in winter. By next October, the average fuel cost per family in the country may increase to 4 thousand 106 dollars. Many analysts have also warned that many people may freeze to death in winter if the supply of fuel is not interrupted quickly.
The crisis will pass soon – no one can hear the hope. Rather, it may be the opposite. The central bank ‘Bank of England’ has said that inflation may leave 13 percent. There is a fear that the energy crisis will be more pronounced in the winter season. Citigroup, on the other hand, forecasts UK inflation to hit 18 per cent at the start of 2023.
Therefore, no one expects that the price of fuel and food products will come down in the UK soon. Martin McTugh, head of the Federation of Small Businesses UK, said: ‘I’m scared. Can’t hope for anything better. The country’s central bank has also warned that if this continues, the UK economy will fall into recession in the coming months.
Ben Jaranko, senior research economist at the Institute for Fiscal Studies, a London-based research institute, said, ‘The main challenge now is to rein in fuel prices. Because, it has become difficult for poor people to meet the increased cost of energy products. For this they have to reduce expenditure in other sectors.
To tackle the crisis, Boris’ close truce favors reducing the tax burden on ordinary people. “I have a strong plan, which will enrich our economy,” he said after the latest polls in the race to become prime minister. It will lead to higher wages and ensure greater security and world-class public services for every family in the country.’
However, many analysts believe that if the trust policy is implemented, the revenue of the government will decrease. The crisis will not go away, inequality will increase. In this regard, Jonathan Marshall, senior economist of the London think tank Resolution Foundation, said, “The rich people will get the benefits of tax cuts. They already have a lot of money.’ According to him, the crisis can be tackled by encouraging people to be frugal, reduce fuel wastage.
Liz Truss and Rishi Sunak—both are now showing people the dream of a prosperous economy. Boris came to power with the same promise. But his dream remains elusive. But how much Boris is responsible for the current economic crisis is debatable. It remains to be seen how successful Boris’ successor can be in resolving the crisis.