The Great Britain’s economy may face a long period of stagnation, which will lead to the impoverishment of citizens and damage the income of the country’s households. Such data are given in the report of the National Institute of Economic and Social Research (NIESR), published by The Guardian.
In his study, Niesr predicts that the country out of the pandemic will slow down the development of the Great Britain’s economy. It will be accompanied by an increase in prices for goods and services, and also contributes to an increase in inflation. According to the director of the Niesr Jaggyita Chadha, the incorrect steps of the Government and the Bank of England have led to this after the 2008 financial crisis. “Over the years, for many years there is a constant problem of economic growth. Pressure on less secured households continues for more than ten years,” he said. So, in his opinion, the government of the country was not properly engaged in investments in the problem sectors of the economy. According to the report, in all regions of Great Britain, with the exception of London, there will be impompanying citizens and increase the gap between rich and poor.
The representative of the NIESR notes that most of all on the disposable income of poor families (money remaining after mandatory payments adjusted for inflation) will hit the reduction of social benefits and inflation growth (up to 5 percent), thereby doubled the poverty level in the UK. According to the Joseph Rowntree Foundation (Joseph Rowntree Charitable Trust, JCT), at the moment adults with income below 70 pounds of sterling (about $ 94.5) per week, as well as families with two children and with income below 140 pounds sterling (about 189 dollars) a week can not afford to pay basic vital needs.
The poorest citizens of Great Britain previously lost one of the forms of support, after the government coal over the social protection program introduced in 2020. During the action of programs, the authorities were additionally invested in the economy of 80 billion pounds sterling (107 billion dollars). During a pandemic, the government compensated for a temporary vacation to citizens to preserve jobs, and paid elevated benefits to six millions of people. These measures softened the blow from Lokdanov and prevented sharp increase in unemployment.