Has stability in the UK been restored?
David Adams investigates the bullish leadership, low interest rates and optimistic growth forecasts in the UK in the wake of Brexit and the COVID-19 pandemic
At the time of writing, in November 2021, life in the UK feels relatively stable in comparison with some of the recent turbulence we have experienced. But following a troubled autumn, the country may now face an extremely difficult winter. Adding to the ever-changing COVID-19 landscape, the latest variant – Omicron – has now been detected in the UK. The impact it will have is uncertain.
The economy continues to recover from the pandemic, but trade with the EU is complicated by Brexit-related disruption. Both these factors have contributed to labour shortages in key areas of the economy and have combined with those shortages to create huge disruption in supply chains – the most visible instance of which was the recent fuel shortage. Businesses and consumers have also been affected by a crisis in the energy markets, which has pushed up costs and may increase the threat of energy supply problems during the winter.