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by breckenedge 1392 days ago
Since this is also related to higher energy prices, do you think the invasion on Ukraine is also a contributing factor? Although if that were the case, we’d also see as high of inflation in other European countries?
5 comments

That's definitely a contributor, but, as you say, it's generally worse in the UK than in other large European countries. This whole thing is a bit of a perfect storm for the UK.
Have you heard of the plight of an even larger European country? Hint: it rhymes with Burmany.

It's bad in the UK, to imagine it's the worst in the UK vs Europe is to show your ignorance.

Germany's warning that inflation may hit or slightly exceed 10% by end of year, which, to be clear, is very bad, but is less bad than 18.6%.
It's definitely a contributing factor. The thing is, other nations just have to deal with high gas prices. The UK has to deal with high prices AND:

* being reliant on gas for both heat and power

* a collapsing pound driving prices higher in local currency

* no supply guarantee since we left the EU (we are now "at the end of the pipe")

* some of the most energy inefficient housing in Europe after decades of not investing or taking climate change seriously

* very high taxes, very low spending on poor people and a big deficit (so we have no room to bail out users)

* no domestic storage so we are just constantly exposed to spot prices

And that's just the issue around Russian gas. We also have dozens of other economic chickens coming home to roost...

> no supply guarantee since we left the EU (we are now "at the end of the pipe")

If anything, the UK is at the head of the pipe with regards to European LNG imports: https://www.bloomberg.com/news/articles/2022-04-26/britain-n...

I just hope that both sides are sensible: Europe is relying on UK LNG terminals to import gas; the UK is relying on European storage facilities.

I'm curious, do we actually have higher taxes than most other countries and if so in which specific areas?

Personally a well paid individual no dependants I find the Tory focus on cutting taxes ridiculous but I'm aware I'm ignorant of how we compare to other countries.

Comparing tax rates is notoriously detail driven but...

I earn a (healthy) 95k. I pay 35% in NI and Income tax. I'd pay another 9% in student loans if I wasn't lucky. So 44% total deductions

https://listentotaxman.com/?year=2022&taxregion=uk&age=0&tim...

In France I'd pay the exact same rate overall (95kGBP->112kEUR)

https://salaryaftertax.com/fr/salary-calculator

I think this sums up the UK: European style taxes, US Style public services.

Cynicism aside for a minute, I think we have a real issue in the UK with a diminishing tax base: fewer and fewer people contribute and they have to contribute more and more of their incomes and everyone gets less and less services.

Hmm I'm not sure it's fair to consider student loan repayment a tax. It's limited and many people will pay it off fast. I presume you're based in London if you're on £95k and still have outstanding student loads?
Moving to a European country with less industry and a moderate climate closer to the Med would blunt energy costs for someone (lower energy demand = less energy spend).
Yes, we're seeing inflation rates across the board above 10%, which is where the UK sits today. Estonia is the highest at 23%.

https://www.statista.com/statistics/225698/monthly-inflation...

CF Industries shut down their two nitrogen fertilizer plants in the U.K. back in September 2021 due to high natural gas prices.