Children attending school in the UK now will experience a funding crisis as the new normal. Some headteachers claim that their schools can no longer afford textbooks. Others are cutting lunchtime food for the 800,000 students living in poverty.¹

This is the cost of living crisis. Costs of basic necessities like food and energy are soaring. Almost every area of life is affected, but it will be felt most keenly in the household. Household gas and electricity bills in Britain are expected to soar 80% in October, raising the prospect of a mortally cold winter which could kill thousands.

Some believe the crisis is a failure of the international order. Although the causes are complex, Russia's invasion of Ukraine has made a looming crisis worse. Russia has slashed its gas imports to Europe, causing global price increases. According to experts, this could have been helped if rich countries had sourced fuel from elsewhere earlier. 

For others, it is a symbol of a long period of conservative economic policies across Europe which have disproportionately forced those on lower incomes to carry the burden of economic uncertainty. 

Europe has been hit by a series of protests and strikes over the crisis. In the UK, fears about rising living costs have led to a wave of unionisation, strikes and an unexpected change in political opinions.² 

British prime minister Liz Truss has proposed solving this issue by turning the UK into a low-tax economy. This means cutting tax rates for higher earners. Truss believes her plan will boost economic growth through encouraging spending, a theory known as "supply-side economics". 

Others know it as "trickle-down economics", the controversial policy associated with Margaret ThatcherBritain's first female prime minister and the longest-serving prime minister of the modern era., which many believe causes inequalities. Some ask why normal people are once again being asked to "tighten their belts" whilst high earners and companies get financial support.

International relations, politics, a mixture of both: for now, the great debate on the cause of this crisis continues. But there is one thing experts agree on: the question of who should shoulder its burden must be answered now.

Yes: Higher earners and those with more disposable income need to shoulder the burden of the cost of living crisis. It is the only fair option.

No: We need to prioritise economic recovery, not short-term solutions like taxing firms more. Tax relief for the higher brackets will boost spending in the long term and provide for our future.

Or... A mixture of policies is the right approach. If we offer temporary relief to high-performing businesses, we need to protect those on low incomes too, even if it costs us in the short term.