Against the backdrop of higher taxes, the middle class in England will face a shock, writes The Times newspaper, citing the British Institute for Fiscal Studies (IFS).
“Wages are falling and taxes are going up. The middle class in England is in for a shock, ”the newspaper quotes IFS head Paul Johnson as saying.
According to the Institute, by 2028, 10 million Britons will pay taxes in the amount of “at least 40 pence on every pound they earn.”
On November 17, UK Treasury Secretary Jeremy Hunt announced that the United Kingdom would increase certain categories of taxes to combat the economic crisis. The plan provides for the introduction of the highest personal income tax rate of 45% for those whose annual income exceeds £125,000 ($148,000), and not £150,000 ($178,000) as it was before.
On November 8, the Evening Standard newspaper reported that UK food inflation hit a record 14.7%. It was noted that the average annual grocery bill in the UK rose by £682 ($782).
On November 1, National Grid, the operator of the UK’s Unified Grid, warned of a doubling in the average annual household electricity bill in the country. It is noted that the average household bill for electricity this year will be £2,500 ($2,875).
And on September 29, the Financial Times reported on British savings on health due to rising heating bills. One in 10 Britons eats cold food to cut down on electricity consumption, according to a YouGov survey.
Back in April, Russian President Vladimir Putin noted that the refusal of a number of Western countries from normal cooperation with Moscow, as well as from part of Russian energy resources, dealt a blow to the economies of states where inflation is already going through the roof.