Britain in CRISIS? A quarter of households to be thrown into DEBT if prices in the UK rise

According to a new poll for ITV, a rise of as little as five per cent would push 25 per cent of British households into debt.
The national survey of 2,000 people for the Tonight programme asked them what changes they have seen in pricing in the last six months.
UK debt: one in four households could face debtOf those polled, 24 per cent said they would consider going into their overdraft or using a credit card to pay for a five per cent rise in general costs – Martin Lewis recently spoke out about how to pay off credit card debt quickly on ITV.
Experts tell the programme they expect the pound’s value to depreciate in 2017 – leading to price rises for British householders.
This is despite other experts advising they predict the pound will surge against the dollar this year.
The OnePoll survey was commissioned for Your Pound: What’s It Worth? Tonight which airs at 7.30pm on Thursday on ITV.
Consumer affairs editor Katie Morley says: “Political uncertainty strongly impacts the value of the pound and what we saw after the vote to leave the EU was the pound absolutely plummeting on the back of the uncertainty about what that vote meant for the UK economy.
“Because the pound has fallen it is more expensive for manufacturers of everyday objects like food and clothes to import things whether that is ingredients or individual objects from abroad.
“Now that leaves with them with a decision – either they can pass part of that cost on to the consumer or they can change the design or the ingredients of that product  to make it cheaper to manufacture.
“That is a very tough call to make.”
Tim Rycroft from the Food And Drink Federation tells the programme: “The change in the value of the pound has had a pretty profound impact on food and drink, because about half of what we eat in this country comes from overseas, clearly now because the pound is worth less those things cost more.
“At the same time packaging costs more, machinery costs more so for Britain’s food and drink producers they are facing some difficult choices about how do they try to absorb that cost.
“Now they may try and do that by making their businesses more efficient, they may try and source more of their ingredients from the UK but in the final analysis they will probably have to put up their prices, at least a little.”
Reporter Adam Shaw visits Pukka Herbs, who manufacture nearly two million tea bags a day using imported tea.
Co-founder Tim Westwell claims the business has been hit hard by increased import costs.
He says: “Most of the traders that buy tea, buy in dollars. So because of the the currency devaluation in the last six month or so we have seen our costs increasing in raw materials at least the herbs we bring by about twenty per cent so that’s quite significant increase that we have had to suffer in terms of putting into our costs of materials.”
*Source express.co.uk

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