Why is the UK Economy collapsing?

I recently had a chance encounter with an entrepreneur who shared their frustration about the burden of a tax rate that exceeds 50 percent. It appears that everywhere I go in London, the prevailing sentiment among individuals is one of dissatisfaction. The current situation in the city is deeply concerning, as soaring prices have rendered it increasingly difficult for residents to afford even the most basic necessities, such as bread. The rising cost of living has far outpaced the growth of salaries, creating an even more challenging environment for individuals in an already expensive city.

While it is true that many countries worldwide are grappling with inflation, the United Kingdom finds itself in a particularly dire situation—a cost of living crisis. Prices of essential goods like food, housing, and fuel have skyrocketed, leaving ordinary citizens struggling to keep up. Furthermore, the UK economy is expected to shrink, while other nations, such as India, have surpassed it in terms of economic growth. The root cause of this crisis is often attributed to a significant decision made in 2016—Brexit. The UK's departure from the European Union has resulted in the devaluation of the pound and has hindered overall economic progress.

However, it is important to critically examine the extent to which Brexit is genuinely responsible for the current state of affairs. It is unrealistic to expect that leaving the world's largest trading bloc would lead to an immediate flourishing of the economy. Consequently, a substantial number of individuals have chosen to leave London and even the UK entirely, seeking better living conditions and more affordable housing in countries such as Portugal and Spain.

The overall situation appears grim, with persistently high inflation and a cost of living crisis that is drastically impacting the lives of ordinary people. The UK has now entered its most substantial recession on record, as evidenced by the surge in housing prices. The skyrocketing rent prices in London have rendered it unaffordable for middle-class workers, leading many to seek refuge in cheaper cities or even to leave London altogether. Predictions indicate that the housing market will continue to decline due to increased borrowing costs. Moreover, wages in the UK are failing to keep pace with the rising prices, and the International Monetary Fund (IMF) anticipates a recession while other major economies are experiencing growth.

Multiple factors have contributed to the struggles faced by the UK, including the severe impact of the global pandemic, the decision to print more money, and the reliance on gas-generated electricity amidst soaring energy costs due to the ongoing conflict in Ukraine. The challenges posed by Brexit have further compounded the existing difficulties by making trade more complex and exacerbating staffing shortages. Additionally, the country has experienced massive train strikes that have disrupted transportation systems, ultimately affecting businesses and the overall economy. The blame for these issues is often placed on government mismanagement, the relentless pursuit of capitalism, and poor financial decisions made by those in power.

Consequently, a growing number of individuals are contemplating leaving the UK to seek opportunities in other countries where the cost of living is lower, and the quality of life is more attainable. The prevailing uncertainty and the lack of a satisfactory quality of life are driving some individuals to make the difficult decision to restart their lives elsewhere. Unfortunately, the situation is expected to worsen under the current government, with long-term effects stemming from inflation and the hidden recession that is plaguing the nation. Despite diligently paying their taxes, the people of the UK are not experiencing the promised benefits that should come with such contributions. So, some has been contempleting that what is the benefit of Brexit? Or was it too early?