From particularly dark to heartbreaking for its inhabitants Britannia the image of its economy emerges as tomorrow enters a new era of austerity, while inflation steadily reduces the income of British households, h unemployment increases and the number of vacancies decreases.

The austerity will be fueled by tax hikes and spending cuts expected to be announced tomorrow by the new Chancellor of the Exchequer, Jeremy Hunt, who is trying to fill the financing gap in the country’s finances. They are estimated to range from £50bn to £60bn, which equates to $59bn a year. Foreshadowing the difficult days ahead for the British public, Hunt spoke to the BBC on Sunday and stressed that “everyone will pay more taxes and spending will be cut.” At the same time, he promised that the government would come up with a new and more focused plan to support British households in the face of the energy crisis.

This new austerity policy will be announced just days after the Bank of England released data on Friday suggesting the UK economy is at the start of the longest recession in its history. British GDP has already contracted in the 3rd quarter by 0.2%. At the same time, however, the Bank of England has embarked on the most aggressive rate hike since 1989 in an attempt to stem inflation, which has risen to 10.1% since September and is hurting British households’ purchasing power as well as their standard of living. The figures show that British wages are rising at the fastest rate in 20 years, but the increase is still not enough to fight inflation. In September, they rose 5.7%, recording the biggest increase since 2000, but again, adjusted for inflation, they were actually down 2.7%.

However, according to some reports in the British press, some of the Rishi Sunak government’s most stringent austerity measures will come into effect from 2025, after the next election is held first.

The Treasury Secretary’s statements tomorrow are expected to be accompanied by the Treasury Office’s forecasts, which are expected to be as ominous as those of the Bank of England. According to Deutsche Bank economists, the Budget Office is forecasting a “deep and protracted recession” for 2023, with growth remaining frozen until at least 2025 and inflation picking up significantly. Deutsche Bank also believes that the Budget Office will take into account the slow recovery of the labor market with unemployment rising to 5.5-6% over the next two years. Already the latest figures show that unemployment in Britain rose to 3.6% after it jumped to 3.8% in September alone.

For its part, the opposition Labor Party attributes the woes of the British economy to “12 years of continuous Tory blunders”, referring to the ruling Conservative Party, and points out that “wages are falling again, thousands of workers over 50 years old have left the labor market, and a record number of unemployed remained outside the labor market.