Tuesday, 17 April 2018 01:32

Brexit and the rise in household bills

We’re going to talk about Brexit. Don’t worry though, we’re not going to get into the debate of whether we should be leaving Europe; that’s old and boring and quite frankly people need to stop banging on and just get on with it. We’re leaving and that’s that in our opinion.

Instead we’re going to look at the impact that Brexit is having on our day to day spending and how incomes and household expenditure are being affected.

We are keen to point out, of course, that true Brexit hasn’t even occurred yet. Yes, we all know that we are leaving, but we are still bound by our European strings at this point. Just the announcement that we will be going it alone, however, has already meant that we have seen certain changes. Some businesses have already said that they will struggle without the security of being in Europe and may go bankrupt and some householders have also seen everyday items and bills going up in price.

According to latest research, car insurance prices have gone up quite significantly since the Brexit vote was announced as well (we’re not quite sure why car insurance has to rise because we are leaving Europe but…) which has left many people feeling the squeeze. The cost of motoring is already at a ridiculously high level and it appears that it won’t be abating anytime soon.

So, are we doomed? Experts say because of the economic uncertainty surrounding Brexit, there has been a sense of panic amongst many businesses and organisations as they do not know what the future holds out of Europe, which is why prices have crept up. As a safety net, the businesses have felt that they have had to increase prices and put the pressure on consumers just in case the company loses out once all ties have been severed with the rest of the continent.

Personally, we think we can still be a success out of the European bubble but because no-one really knows the outcome of the situation until we are fully out of the bloc, people are preparing for the worst.

As well as car insurance, energy bills have also shot up. Many places in the UK have seen a rise of nearly ten per cent on their gas and electricity bills – which has had a significant impact on householders’ monthly budgets.

To be honest, though, can we really pile all the blame at Brexit’s door? Before the whole Brexit theme came to fruition, energy prices were rising year on year and car premiums were also creeping up constantly. In fact, we wrote articles questioning why premiums were rising at such a rate, before Brexit was even a ‘thing’.

The fact of the matter is that prices were always going to rise, but the uncertainty surrounding Brexit means that prices will continue to keep climbing because no-one knows the outcome.

Uncertain times are ahead, but as for householders being stung with price hikes, that was always going to happen regardless of Brexit we think.

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