PNN – With the UK economy suffering from deep structural problems and inflationary pressures, the start of the new financial year has been marked by an unprecedented wave of price increases across everything from energy, car tax and water bills to housing, internet, transport and even TV licence fees. Experts are calling it a “devastating storm on people’s livelihoods”.
According to the report of Pakistan News Network, the new British financial year begins on April 1. Simultaneous price increases in various sectors of public services are facing British households with unprecedented financial pressure. According to the official announcement of the regulatory bodies, from tomorrow the average annual energy bill of households will increase by 111 pounds to 1,849 pounds. In addition, car taxes, public transportation fees, internet tariffs, water bills, and even the cost of a TV license are facing significant growth.
The increase in water bills, estimated at an average of 26%, or £123 per year, has been met with strong reactions from citizens, especially in light of the widespread scandals involving private water companies and their billion-dollar profits. Experts have called for a review of the privatization of the sector and a return to public control.
In the communications sector, internet and mobile phone tariffs continue to rise due to old contracts despite new regulations. Service providers have also included an average annual increase of 22 to 42 pounds in bills.
Meanwhile, a rise in car tax for most drivers and the end of a tax break for electric cars has sparked protests from environmentalists and clean car owners, with experts warning that the move could hinder the spread of fuel-efficient cars in the UK.
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The increase in council tax to a ceiling of nearly 5% has also raised concerns among residents amid the financial crisis facing local authorities. Some areas, such as Birmingham and Newham, have even been given permission to increase rates above the ceiling, which will further increase the pressure on low-income households.
In addition to all of these issues, the government’s decision to reduce tax exemptions for home buyers will also take effect tomorrow; a move that experts consider another step towards weakening the purchasing power of young people and putting pressure on the housing market.
The start of the 2025 financial year is therefore accompanied by a storm of inflation, which is most likely to hit the middle and poorer sections of society. Media reports indicate an increase in people’s visits to debt advice centers, charities and support institutions in recent weeks, and it seems that the UK is on the verge of a new crisis in the field of public livelihood.
This comes as the UK economy has faced increasing challenges in recent months, from stagnant economic growth and declining consumer confidence to an unprecedented increase in small business bankruptcies. According to official figures from the Office for National Statistics (ONS), the country’s economic growth has virtually stopped in 2024 and inflation, despite a slight decline in some months, remains above historical averages. Many families have been forced to use credit cards, emergency loans or charity donations to cover their daily expenses.
At the same time, the housing crisis and rising rents have put additional pressure on the middle class and young people. Also, the decline in the real value of wages against inflation, along with the government’s continued austerity policies in the area of public services, has led to a widening class gap.
Charities and financial advice organizations have warned that a significant proportion of British society will fall below the official poverty line if this trend continues. Economists say this is the result of decades of unfair policies, a structural crisis in welfare and the lack of a clear vision for sustainable growth.