The UK economy is in a living crisis.
With the recent increase in gas prices, low employment levels due to a lack of available jobs, and monetary tightening still in place due to inflation, the UK is set to fare worse than any other country.
This is causing a cost of living crisis that is making it difficult for everyday citizens to make ends meet. In this blog post, we will look at the effects of these economic issues and explore how to reduce the impact on you.
Gas prices on the rise
It has been reported that starting from April 2023, the cost of gas in the UK is set to rise by around 20%. This price increase could put further strain on households who are already struggling with the increasing cost of living in the UK. Although reports suggest that the prices may fall again after 2023. There is still no guarantee and things could change in the future.
Even if you have an electric car, you may still have to pay for entry into a green zone. This could result in extra costs for motorists who are looking to save money by making the switch.
At RHJ Law, we understand the increasing cost of living crisis and have a solution that could help you cut down your expenses. We can help you relocate to countries such as Malta, Portugal and the UAE. Where the cost of living is much lower than in the UK. The UAE currently provides the lowest fuel costs and is a great option for anyone looking to move abroad and benefit from a low cost of living. Tax advantages in the UAE are a great incentive!
Low employment levels
The UK has been hit hard by low employment levels, with the Office for National Statistics (ONS) reporting a steady decline in the number of people in work since 2007. This is due to the large number of job losses caused by the financial crisis. As well as companies cutting back on staff and moving abroad in search of lower costs.
Furthermore, many people have taken the opportunity to move abroad in search of jobs and lower costs of living. Countries such as Spain, Portugal, and Italy are seeing an influx of British citizens who are looking for better opportunities and a lower cost of living. People are choosing to relocate abroad for jobs as wages are often lower than in the UK. So those who have the means to do so can experience a higher quality of life for less money. The cost of living abroad is also much lower than it is in the UK; making it easier to save money and get ahead financially. Finally, some people simply want to live in another country, experience a different culture, and explore new opportunities.
Monetary tightenings
Monetary tightenings include increases in interest rates for mortgages and other loans. As well as increases to minimum wage and restrictions on borrowing. This means that people are feeling the pinch financially. With some even having to move abroad to seek out a better standard of living.
The increase in mortgage rates can be particularly burdensome, as those with a mortgage are often locked into their rate until the end of the term. This means that they will see their repayments increase, even if the value of their property is not increasing. This can be difficult for many people to manage, particularly those living in areas with higher house prices.
Those considering moving abroad often turn to countries with a lower cost of living. These countries can offer a much higher standard of living than the UK. While being more affordable in terms of rent and other expenses. Moving abroad can be an attractive option.
How RHJ Accountants can help
With the rising gas prices, low employment levels, and monetary tightening still in place due to inflation, the UK economy has been hit harder than most countries. As a result, people’s cost of living is suffering more and more each day.
At RHJ Accountants, we understand the impact these factors have on your cost of living and want to help you make the most of your money. We offer advice on reducing taxes in the UK, so you can spend a bit more on the things you need. Additionally, we also provide you with the option to move abroad or even set up a business abroad. This could be beneficial if you’re looking for a low cost of living while still staying financially secure.
With our expertise and guidance, we can help you become more tax efficient and secure your finances even in a struggling economy. Contact us today to find out more about how RHJ Accountants can help you.
