Anarchist Communist Group shared via thefreeonline
The year 2023 promises to be a very interesting one. The UK government has been forced to borrow more than during the worst financial crisis since 1929 and the worst pandemic since 1918-1920. Government borrowing rose to a record £22 billion in November 2022. This is three times more than the previous year’s £8.1 billion. This is the highest monthly figure for November since records began thirty years ago.

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This rise was caused by a 50% rise in interest payments on government debt due to inflation and an increase in spending due to factors like £1.9 billion in energy bill support payments.
With the rise in borrowing and a recession developing, public borrowing is predicted to rise to £175 billion in 2022/23, £50 billion more than in 2021/22. The Government is now spending more than it is bringing in despite an increase in taxation. With the most of the costs from the government’s energy price support in 2022/23 still to come through, this is why public borrowing will rise to the £175 billion quoted above, 7% of GDP.
This will mean that the Chancellor of the Exchequer will keep an even tighter grip on public finances.

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Seven in ten adults expect the coming year to bring worsening .0economic conditions according to an Ipsos survey. This followed an announcement from the Bank of England that the UK was facing a recession that could last two years.
Alongside this has been the huge rise in energy costs with 75% of businesses seeing operating costs rise sharply.
The Office for Budget Responsibility has stated that household disposable incomes will drop by 4.3% in the current financial year and by 2.8% in 2023/24, the biggest drop since records started in the 1950s. This is having a big effect on the retail sector, with big firms like Joules and Made.com going into administration.

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The cost of living crisis has meant that one in eight people behind on their energy bills have attempted suicide, according to a report by Money and Mental Health Institute. In addition one in six adults surveyed said that they had experienced suicidal thoughts over the last nine months.
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