Higher petrol prices, mortgages and council tax as economy in crisis <\/a><\/p>\n![\"Nigel](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/nigel-green-founder-and-ceo-of-devere-group-at-the-game-changers-series-jw-marriott-hotel-in-6823740.jpeg\" "\\"Nigel")
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Nigel Green has issued a warning (Image: Getty)<\/p>\n
The expert added that cost pressures are accelerating at the fastest pace in more than three years, as energy prices surge and supply chains tighten.<\/p>\n
Britain experienced an economic boom in the 1970s due to large tax cuts introduced by Anthony Barber in the 1972 budget to boost personal consumption.<\/p>\n
The Bank of England then removed quantitative controls on bank lending in late 1971, resulting in an increase in the money supply and credit, fuelling a consumer bubble.<\/p>\n
But this was burst by the 1973 OPEC oil embargo, following the Yom Kippur War.<\/p>\n
Firms laid off workers and increased prices in an attempt to restore profit margins.<\/p>\n
In 1974 and 1975, the expansion of the economy dipped as inflation soared. Later, unemployment returned to an even higher rate than it was prior to the bubble.<\/p>\n
This combination of economic stagnation and high inflation came to be known as “stagflation”.<\/p>\n
![\"Edward](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/anthony-barber-chancellor-of-the-exchequer-receives-an-ovation-after-his-pledge-to-reduce-6823738.jp.jpeg\" "\\"Edward")
<\/p>\n
Britain experienced a boom under Anthony Barber’s Chancellorship before ‘stagflation’ took hold (Image: Getty)<\/p>\n
Mr Green said: \u201cOil and gas prices are feeding directly into production costs, transport, and ultimately consumer prices.<\/p>\n
“At the same time, demand is weakening.<\/p>\n
\u201cThis combination is toxic. Growth is fading just as inflation is being reignited. Central banks have very limited room to respond effectively.”<\/p>\n
He added: \u201cEurope and Asia remain particularly exposed due to its reliance on imported energy, leaving businesses vulnerable to sustained price volatility.<\/p>\n
\u201cInvestors need to recognise that traditional assumptions are breaking down.<\/p>\n
“Bonds may not offer the same protection if inflation remains elevated. Equities face margin pressure as input costs rise and consumers pull back.<\/p>\n
\u201cCash loses value in real terms in an inflationary environment. Standing still is not a strategy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The war in the Middle East has presented difficulties for Britain’s economy (Image: Getty) Brits have been warned…\n","protected":false},"author":2,"featured_media":850863,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[3090],"tags":[242887,51,1700,6643,476,232875,75101,17435,16,15,5190],"class_list":["post-850862","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-1970s-economic-crisis","tag-business","tag-economy","tag-energy-prices","tag-inflation","tag-iran-conflict","tag-iran-israel-conflict","tag-stagflation","tag-uk","tag-united-kingdom","tag-world-economy"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116293734925626435","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/850862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=850862"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/850862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/850863"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=850862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=850862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=850862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Rachel](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/britains-chancellor-of-the-exchequer-rachel-reeves-speaks-to-nurses-and-members-of-the-media-6823750.jpeg\" "\\"Rachel")
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