Queen Elizabeth’s death marks the beginning of a new economic era for Britain

A crowd gathers in front of Buckingham Palace after the death of Queen Elizabeth II in Balmoral, London, England, September 8, 2022.

Leon Neal | Getty Images Entertainment | Getty Images

London — The death of Queen Elizabeth II marks the beginning of a new era for Britain — but one riddled with economic uncertainty and declining public sentiment.

The Queen, who was Britain’s longest-reigning monarch at 96, died “peacefully” at Balmoral Castle in Scotland on Thursday.

After the news, thousands of Britons gathered outside Buckingham Palace in a torrential rain to pay their respects.

Spanning the aftermath of World War II, the collapse of Britain’s vast empire, the Brexit vote in 2016 and a global pandemic, the Queen’s 70-year reign seems to represent a rare constancy in a world of constant change. She was succeeded by her eldest son, who was proclaimed King Charles III hours after her death.

Her death will be marked by a period of solemn ceremonies, during which no government announcements will be made until after her funeral.

suspension of regular politics

The suspension of normal political activity comes days after Britain appointed new Prime Minister Liz Truss, appointed by the Queen herself, as her last act of public service on Tuesday.

Truss steps into 10 Downing Street at a unique time of change for Britain, inheriting the worst economic outlook in years, a deepening energy crisis and a country plagued by rising inequality. .

Hours before the Queen’s death, Truss outlined her plans to address Britain’s cost of living crisis and to help Britons with skyrocketing energy bills following Russia’s war in Ukraine. announced a broad stimulus package designed to

This comes after petitions to boycott the energy bill started gaining momentum in the UK.

The Treasury says packages costing more than £100bn will reduce peak inflation by 4-5%. But economists warn the move could complicate the Bank of England’s already enormous task of keeping prices down to record highs by spurring spending on goods and wages.

The Bank of England raised interest rates last month, its biggest rate hike in 27 years, raising the benchmark to 1.75% and slashing inflation, currently at 10.1%, the highest among G7 countries. Investors had hoped for another 50 basis points rate hike at next week’s BoE meeting, but some now say rate hikes need to be done more quickly.

Growing risk of recession

The uncertain outlook comes as the country faces mounting recession risks. Goldman Sachs warned last week that the UK could slip into a recession in the fourth quarter of this year, echoing earlier forecasts by the Bank of England.

Britons are now preparing for a difficult winter for both homes and businesses.

The British pound has already been on a downward trend over the past few months, hitting a 37-year low of $1.1469 on Wednesday.

For a quiet tribute to Queen Elizabeth II, who died at the age of 96, London’s black cabs line The Mall on their way to Buckingham Palace.

Leon Neal | Getty Images Entertainment | Getty Images

It puts pressure not only on Truss, but also on Britain’s two new leaders, King Charles. King Charles’ role is to rally public opinion in times of crisis. The pair are scheduled to meet in London late Friday.

The monarchy also faces ongoing criticism for being outdated and absorbing finances. Certainly, the costs and ceremonies of the Queen’s funeral will not be lost in a country on the brink of living expenses.

Clearly, we’re in the midst of a massive cost of living crisis in the UK, and what people want to see is a royal family that reflects that.

Andrew Roberts

Historian, Professor, King’s College London

Andrew Roberts, a historian and professor at King’s College London, told CNBC on Friday, “Prince Charles has already made plans to slim down the royal family. In the coming months, possibly years. you will see them.

“We are clearly facing a massive cost of living crisis in the UK and what people want to see is a royal family that reflects that,” he said, noting that fewer royals will be attending high-profile events ahead. He added that it could be

Truss called on Britain on Thursday to “stand together as a nation” and support the new head of state.

“Queen Elizabeth II was the rock upon which modern Britain was built,” Truss said in a speech outside No. 10.

She added that the British people need to rally around Charles III and “help him shoulder the great responsibility that he now shoulders for all of us.” Please save me.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *