Why the UK economy stopped working

With an election looming next month, voters across the UK will be passing judgment on a British economy that’s come under significant pressure. The combination of Brexit, the coronavirus, a cost-of-living crisis and the consequences of austerity under successive Tory governments has left the nation struggling to right itself.

The US burst out of the pandemic’s aftermath with record-low unemployment and a booming economy, while more recently some European nations have managed to dust themselves off, too. But as Bloomberg Originals shows in the mini-documentary Why the UK Economy Stopped Working, Britain has been held back—most of all by debt.

The UK borrowed heavily during the pandemic, albeit at low interest rates. But Russia’s war on Ukraine sent energy prices sky high, exacerbating inflation that’s made low rates a distant memory. The country now faces breathtaking interest payments on all those loans while its public services scramble for funding.

On July 4, UK voters will choose between a Labour Party led by Leader Keir Starmer, a Conservative Party led by Prime Minister Rishi Sunak, and others. In Why the UK Economy Stopped Working, we show that—for the winner—a very difficult task awaits.