THE Chief Executive of Citizens Advice Scotland has warned that Scots "are likely to die this winter" because of the Cost of Living crisis.

Derek Mitchell said people were having to choose between freezing to starving. He called for "urgent and radical action from policymakers.”

READ MORE: Bank of England raises interest rates to 1.75 per cent

His comments came as the Bank of England warned of rampant inflation, with the Consumer Price Index expected to hit 13.3% in October – the highest for more than 42 years.

The Bank's Monetary Policy Committee also voted to increase interest rates from 1.25% to 1.75% – the highest rate since January 2009.

Mr Mitchell said: “Soaring inflation means higher prices in the shops and costs on bills for people already struggling badly with the cost-of-living crisis.

“That inflation is expected to stay high for much of 2023 and the looming prospect of a recession means this crisis isn’t going anywhere, risking a legacy of debt, poverty and destitution for years and years to come.

“Some of the most vulnerable people across the UK this winter will face a choice between freezing and starving.

“That’s the reality and we should not pretend otherwise. People are likely to die this winter because of this crisis unless we see urgent and radical action from policymakers.”

Meanwhile, the Scottish Licensed Trade Association said that small businesses in its group could be driven out of business by the increase in interest rates.

“The last thing businesses need just now is for the Bank of England to increase the interest rate to its highest level since December 2008,” said managing director Colin Wilkinson.

“Businesses have been feeling the squeeze since the pandemic hit two-and-a-half years ago and are already grappling with paying off debts incurred during Covid.

“This could be the final straw.”

As well as changes to interest rates and the projection of inflation, the Bank also said the UK was heading for the longest recession since the 2008 financial crash.

According to projections, the economy will be pushed into a five-quarter recession – with gross domestic product (GDP) falling in each quarter of 2023.

The recession is, however, predicted to be shallower than in 2008, with GDP dropping up to 2.1% from its highest point, with the depth more comparable, Bank officials said, to the recession of the early 1990s

 

 

 

“Soaring inflation means higher prices in the shops and costs on bills for people already struggling badly with the cost of living crisis.

 

“That inflation is expected to stay high for much of 2023 and the looming prospect of a recession means this crisis isn’t going anywhere, risking a legacy of debt, poverty and destitution for years and years to come.

 

“Some of the most vulnerable people across the U.K. this winter will face a choice between freezing and starving.

 

“That’s the reality and we should not pretend otherwise. People are likely to die this winter because of this crisis unless we see urgent and radical action from policymakers.”