There are plenty of nasty bills looming for the average British household that could persuade many to keep their savings firmly on deposit and prevent the economy from flourishing.
Anyone looking for a secondhand car will pay 15% more this year than last – that is, if they can find one that suits their needs. Paying monthly energy bills is no fun since world prices rocketed. And the cost of essential services such as childcare are only increasing over time.
Inflation was up 2% at the last count and many economic forecasters expect it to jump well above 3% before Christmas. The shortages of goods across much of the manufacturing and retail industries, combined with staff shortages made worse by Brexit visa restrictions, will see to that.
An increase in national insurance contributions (NICs) is also on the horizon, adding to the squeeze on incomes. Last week the government said it would ask households to cough up an extra 1.25% on…