Simple Question: why is the cost of living in the UK so high?

Question

In this days, every country uses "made in China" products but why it seems that only UK (second behind Tokyo) has such a high cost of living? Is it that not enough competition to bring the cost down? Or the OFT needs to do something?

Answer 1

The uk is a welfare state - meaning that everybody who works contributes towards the national health system, education, pensions, etc etc. The basic rate of income tax is circa 25% and can go up to 40%.
The government takes 40% of any companies earnings in tax also.
Ciggerettes, alcohol and driving costs are inflated massively by additional taxes.
We don't have a lot of space so land-costs are high.
Government spends too much money on wars.
Government gives away too much money in aid.
Government pays people to be unemployed.
Government provides state housing to those that need it (e.g. single parents)
Crime is growing so higher cost of policing.
We don't have a manufacturing industry so most things have to be imported.
We don't create enough of our own energy so we need to import that too.
The divide between rich & poor is growing - the wealthiest people are pushing the cost of living for the rest of us up and up.
I'm sure there's plenty of other reasons but this is depressing me...

Answer 2

I totally agree. I recently spent 10 months in the US where the cost of living must be half what it is here. I also would like to know the reasons but I suspect that somebody, somwhere is making too much profit out of us.

I disagree with some of the other answerers, VAT in America is approximately the same as it is here once you add both State and Federal taxes, they have a bigger immigration problem than we do and their income tax is similar to ours.

Answer 3

A simple answer to your simple question .Taxes. Example I live now in Bulgaria and cigarettes cost under £1 for a packet of 20. In the UK its over £5, most of which is tax. OK

Answer 4

High land prices passed on to consumers.

The need of imported goods to either cross the Channel or use the Chunnel bumps up prices too.

'Trickle-down' from London's status as a financial centre means average Joes can get away with charging a wee bit more.

Sterling is a 'strong' currency, distorting comparisons with other countries.

Somebody will be along in a sec to blame Tony Blair for inventing all of these.

Answer 5

Let me tell you this, move to Ireland and try and live here for a while. You will then discover that the cost of living in the UK is actually not so high.

Answer 6

Because that pillock Tony Blair put a money grabbing Scotman in the job of chancellor, and his solution to everything appears to be squeeze the public for every penny they've got until they bleed, without really doing anything to solve the problem.
That also involves putting up the costs for businesses to run their premises (like my local DIY store that closed down last year was getting charged £30,000 a year in business rates by Scarborough council) + additional costs from fuel costs for vehicles getting goods to & from businesses going through the roof.

Then companies are also having to face big wage rise demands, due to staff not being able to afford the rises in living costs with things like council tax (shot up from about £600 - £750 before New Labour got in charge, to well over £1,000 in most cases), fuel....... which is taxed twice (fuel duty, then V.A.T on top of that), and all kinds of other things (like prices going up from businesses having to cover their additional expenses)

That, and bank & credit card companies being allowed to get away with murder http://www.consumeractiongroup.co.uk

Answer 7

Because the UK is controlled by a bunch of greedy bastards.

Answer 8

Taxes, our government rip us off big time with everything we buy in this country that's why.

Answer 9

Well I think it is because the pound is strong in the international market.

Answer 10

to pay dole money to bone idle tw*ts that come here through the chanel tunnel