A recent report from the Centre for Policy Studies has revealed how many households are facing a real strain financially as the result of rising taxes, bills, and living costs. Despite the two interest rate cuts over the past few months many other costs have been rising, and have been placing additional strain on household finances.
According to officials involved with the report income levels have slowed down since 2005, yet bills, taxes, and living costs have continued to rise at a far faster rate, which has made it difficult for many households to cope with their financial obligations. This has not been helped by interest rate rises over the past year and a half, and despite the base rate coming down slightly other rising costs have negatively impacted finances.
Over recent months consumers have had to cope with sharp rises in the cost of petrol, rising food prices, and increases in the cot of energy usage, all of which have counteracted the benefits of the two recent interest rate cuts. The Centre for Policy Studies has produced a report entitled ‘Why Do We Feel So Broke?’
The impact of rising costs, volatile financial climates, and tighter lending conditions have all had a negative impact on consumers, reducing confidence and spending levels, which has had a knock on effect on the general economy.
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