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Wednesday, October 5, 2022
HomeLife-StyleThese are the three big financial problems facing the new prime minister

These are the three big financial problems facing the new prime minister

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Trusses should sort these out ASAP (Image: Reuters)

Today is that day.

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We previously learned it was “runway time” after Liz Truss was appointed Britain’s next Prime Minister.

But there are some key issues that need to be addressed when managing money (which runs out quickly).

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There are three main problems dominating your inbox.

1. Energy

High on the agenda is determining how to prevent total disaster this winter with utility bills averaging £3,500 a year. The worst months are January and April, when typical household bills are expected to reach £6,000.

So what are the options? Here’s what governments should consider:

  • Provides emergency energy credits for people with a household income of £30,000 or less. Businesses should also be able to apply for credit. The government will have to pay the price increase from October 1, but only to those who need it.
  • Ax green tax. Controversial, I know. This is the tax we all pay on energy bills that are used to pay for new wind farms, solar energy, nuclear power plants, and other green energy sources.
  • Yes, we urgently need to invest in creating our own energy for the UK. Yes, renewable energy is part of the answer. No, now is not the time to ask taxpayers to pay for something that won’t work for the next 20 years.
  • Issue energy savings bonds and allow pension funds, companies, individuals and all institutional investors to invest in them. 10 years at an interest rate of 10%. Yes, it’s expensive, but it will quickly attract a lot of cash, and savers and retirees are desperate to put their money elsewhere.
    • Building efficiency grants for individuals and businesses to cover the cost of solar panels, insulation, triple glazing, etc.
    • Community grants for small-scale local construction of wind, solar, biofuel, or other clean energy generation and storage.
    • Improve your network to waste less energy.

2. Personal tax

Liz Truss says she’s removing Rishi Sunak’s national security campaign to get people to “put more money in their pockets.” The problem is that removing NI increases may make some difference for some people, but not enough.

UK train strike disrupts weekend travel

We’ll probably have to fight for a raise (Image: Courtesy)

It doesn’t help people with benefits or low-paying jobs. This is likely to help companies save on labor costs. It even increases staff salaries.

3. Payment

We still have to think of all the teachers, dockworkers, train drivers and support staff, criminal lawyers, Royal Mail and BT staff who are on strike for jobs and wages who want to earn more to cover their living expenses. With inflation running at 13%, we all need more wages.

Staff, which was £1 last year, will be £1.13 in October. If Citi analysts are right, it will be £1.18 in the new year. This means that someone who earned £30,000 last year will have to increase her salary to £35,400 in January to maintain the same lifestyle.

Source: Metro

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