BY ARUN SRIVASTRAVA
On the death of Queen Elizabeth II, a divided Britain finds itself in a mystified situation where the country’s economy under new Prime Minister Liz
Truss not only faces the worst nature of the breakup, but also the threat of losing the emblem of being one of the superpowers. He would not be
an exaggeration to say that the loss of the Queen will test the political and governance skills and acumen of the leaders of divided Britain
More than a litmus test for the new King Charles 111 as to how he would help political leaders deal with the emerging situation, the
The future will pose a serious challenge for Truss to preserve superpower status and lift the country out of the quagmire of a crumbling economy.
At this point, it is imperative that Britain’s troubled economy and wounded civil society rise up and deal with the situation sensibly, as his death will have
have a wider impact on future development and find political and constitutional resonance.
Some people may hate Queen, but there’s no denying that she was the most powerful unifying force. Brexit has had no significant impact on
the body politic of the country. Britain has seen many upheavals in the last 70 years of its monarchy, but it has emerged unscathed. But the future
challenges are more complex and are fraught with the danger of inflicting damage. Of course, the upheaval of British life should not be underestimated.
It is absolutely clear that with his absence from Britain’s political horizon, the nation will realize the non-appearance of the unifying force
A look at the prevailing economic situation in the country will make explicit the seriousness of the threat. Like Duncan Weldon, correspondent for
Economist, points out that “Britain is supposed to be a great world power, and yet if you take out London, statistically the UK is about as rich as
Romania. I have no idea how it happened.
In 2007, the UK was richer than the US. Its GDP per capita was around $50,000. Now, 15 years later, the UK has not only stagnated, it is poorer
one fifth compared to 15 years ago. Its GDP per capita is closer to $40,000. Things will almost certainly get worse. It’s amazing and
confusing because the UK represents the cradle of modern capitalism, the special relationship, the cradle of the industrial revolution.
The UK economy has double digit inflation, just over 10%. This is the highest inflation since 1982, about 40 years ago. So the highest
inflation in four decades. At the same time, wage growth is around 5.5, 6%. People are therefore seeing their real incomes drop. If the forecast of
The Bank of England is an indicator of real household disposable income, i.e. household income will fall this year. Then it will fall
year. Looking at the most recent government and Bank of England forecasts, the consensus of private sector forecasters is the
the economy slips into recession. This is expected to last most of next year, 2023. So the immediate outlook is quite bleak.
Experts believe Britain is facing the worst economic crisis and new Prime Minister Liz Truss is unlikely to succeed.
save the day. He notes that the Bank of England has already released the projection that a deep and lasting recession is hitting
at the door. This comes after a 15 year period of total economic stagnation and Brexit. It is truly sad and disgusting that former prime ministers did not
apply their minds to find a way out to salvage the situation and simply help the crisis escalate further, for the worse.
Recently, Britain and its people have witnessed the alarming rise in energy prices. People say they haven’t been through such a situation
since the oil shock of 1973, but worse in many ways. The fact is that Queen’s death caused business and economic activity to plummet in Britain when the
the government, the Bank of England and businesses are struggling to contain inflation and alleviate a deep economic crisis. Although Truss announced his support
package, to cost more than £100 billion, it is not yet clear how much it would help save the day. It is designed to protect households and
businesses from soaring energy prices.
Since 1952, Queen Elizabeth’s image and ciphertext have appeared on nearly all government-issued items, including currency and passports.
However, after Queen’s death, the UK will see many changes and updates, from coins to passports. The exercise to replace the image on the currency,
stamps and figures of Queen Elizabeth II with King Charles III will cost a considerable sum in the UK. All UK passports will also require a change.
According to government data, a fifth of UK households now face an average shortfall of £60 a week between what they earn and what they need
to pay for necessities such as electricity bills, rent, transportation and food, as people’s disposable income is at its lowest level in nearly five years. BBC
reported that this week, on Wednesday, the British pound fell 064% to $1.145, a level not seen in over 35 years. The Bank of England also said that a weaker
the outlook for the UK economy in the context of a stronger dollar put pressure on the pound sterling. The Bank expects the economy to contract
during the last three months of 2022 and continue to contract until the end of 2023.
There is no doubt that the death of Queen Elizabeth marks the start of a new era for the UK, which is fraught with economic uncertainty and a national downturn.
feeling. The pound has already been on a bearish trajectory over the past few months, hitting a 37-year low at $1.1469 on Wednesday.
The economic downturn facing Britain will also affect its associated countries. Developed countries like Australia, New Zealand and Canada
are constitutional monarchies, and their political systems are oriented in a way that the new monarch of the United Kingdom will do as part of the usual
become their head of state. The colonial past of these countries will have an impact on their political economy. The new era, which begins after Queen’s
death, will witness many changes that would directly alter the way and way of life of the British people.