Households will experience the biggest fall in their living standards since records began as they face soaring inflation, tax increases and rising energy bills.
In a bleak assessment of the year ahead, the Bank of England warned people that take-home pay would fall by five times the amount it did during the financial crisis of 2008. It will be the worst hit to real incomes since comparable records began in 1990.
We are plunging headlong into the greatest economic transition in history. We don’t have to speculate about that, either.
Cash in people’s pockets would be superseded by a new ‘Britcoin’ digital currency in a plan being pushed by Chancellor Rishi Sunak.
In what Treasury insiders say would be the biggest upheaval in the monetary system for centuries, the Bank of England would establish a direct digital equivalent to physical money and take control of it in the same way as sterling.
Its supporters in the Treasury say that it would allow the Bank to give the economy a boost in times of financial crisis by paying the ‘Britcoins’ directly into people’s bank accounts.
The Prime Minister has appointed the outgoing Bank of England Governor Mark Carney as a key adviser for the UN climate change conference, COP26.
Boris Johnson met today with Mr Carney in Downing Street where he confirmed his new role as the Prime Minister’s Finance Adviser for COP26.
Mr Carney will help the UK Government to mobilise ambitious action from across the financial system ahead of the UK summit in November.