The honeymoon period of Britain’s new Prime Minister Rishi Sunak seems to be over. However, they still face challenges such as rising inflation, rising electricity bills and energy crises, as well as cuts in government spending and a potential recession.
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Sage Sunak of Indian origin (Rishi Sunak) Prime Minister of Britain (UK Prime Minister Rishi Sunak) A good amount of time has passed since it was created. At the same time, Britain’s challenge is now upon them. (Challenge of Rishi Sunak Sarkar) The pressure to overcome it also seems to be mounting, as on the one hand their honeymoon period is coming to an end, on the other hand they are facing the highest inflation in 41 years. (Inflation in UK)Energy crisis (Europe Energy Crisis)People’s rising electricity bills, possible recession (UK Recession) Difficulties such as divestment and raising investment remain intact.
The economy is in shambles after Brexit
After leaving the European Union, the UK economy, particularly business investment, has stagnated. Apart from this, trade has also been restricted. Even if the Rishi Sunak government overcomes it, the impact of the coronavirus on the economy has added to the leprosy.
However, the UK government has signaled its withdrawal. British finance minister Jeremy Hunt on Wednesday (Jeremy Hunt) Said his government was not going to change the Brexit deal with the European Union, but could work to improve the relationship in light of the needs of companies and businesses.
Jeremy Hunt has made it clear that his government’s intention is to negotiate a Brexit deal (Brexit Agreement) He does not want to distance himself from Britain at all, he never wants to take Britain into a situation where he has no control over the rules. He believes that the current trade relationship with the European Union can be eased through the use of technology.
Rishi Sunak also spoke to the Confederation of British Industry on Monday. (CBI) A meeting said Britain would pursue its agenda on immigration and controls. At the same time, the CBI says, Britain can work on temporary work visas to boost the economy.
Water will get relief from high inflation
Another major challenge facing the Rishi Sunak government is high inflation. Inflation in the UK hit a 41-year high of 11.1 percent in October. In such a situation, besides providing relief to the people, the government has to balance the government expenditure.
Before Rishi Sunak, the Lease Trust government tried to provide relief to the people by reducing taxes, but the Sunak government has made it clear that they will not refrain from taking drastic measures.
Jeremy Hunt recently hinted at the possibility of tough decisions in the government’s new budget, as well as the withdrawal of many concessions. The Sunak government can insist on reducing government spending or spending on the right items in its budget.
The Bank of England may increase the policy interest rate in the future to control inflation. It is currently at 3 percent, which may increase to 4 to 4.5 percent.
Rising electricity bills are a major challenge
Rising electricity bills are not only a problem for the people of India, but also affect developed countries like Britain. In fact, the energy crisis in Europe increased after the Russia-Ukraine war. Disruption in gas supply increases fuel prices while increasing people’s electricity bills. At the same time, the cost of the industry is also increasing.
In this situation, another challenge of the Sunak government is to overcome it. At the CBI meeting, Prime Minister Rishi Sunak also said the government would do more to support energy-intensive businesses. In order to reduce the cost of the industry. However, he also made it clear that this relief given to traders in electricity bills can be targeted.
English title: New UK Prime Minister Rishi Sunak’s honeymoon period is coming to an end soon, but inflation still has to fight the energy crisis of investment.