Remember rip-off Britain? This was when British consumers were routinely fleeced, paying higher prices than anybody else in Europe for food, clothing, cars and just about everything else. The car firms christened Britain Treasure Island because they could get away with charging much higher prices here. Then, thanks to intense consumer pressure, spearheaded by this newspaper’s rip-off Britain campaign, things improved.

 

For most goods, consumers now get a pretty good deal. Marks & Spencer shocked the stock market last week by announcing weak sales for the run-up to Christmas but it also said that it had cut its non-food prices by 6%. In the age of the £49 cashmere jumper and bargain basement figures at Primark, prices are pretty competitive on Britain’s high streets and in the car showrooms.

 

Unfortunately, like the hydra of ancient myth, rip-off Britain is hard to destroy. Chop off a few of its heads and more will grow back. They are back with a vengeance now, not in the shops but in a whole range of other areas, mainly services, that are squeezing household budgets and adding to economic uncertainty and gloom.

 

Npower has just increased its gas prices by 17% and electricity by 12% - with much bigger increases in some regions – and other utility firms seem certain to follow. The companies blame rising wholesale prices for energy. They have, however, developed a neat habit of passing on such rises but depriving customers of the benefits of any falls. More to the point, Npower and some of the other big energy suppliers have European parent companies. Strange then, or perhaps not, that British customers are facing bigger increases than consumers in their home markets.

 

For gas and electricity, read petrol and diesel. The recent record oil price of $100 a barrel has been felt by every country. But thanks to greedy oil companies and a greedy Treasury, it is felt particularly in Britain. Britain’s prices are close to being the highest in Europe.

 

Those who are tempted to leave the car at home, however, face a nasty shock. Even before winter really got going rail passengers were hit with a combination of service disruptions and sharp January fare increases. The government may have an inflation target of 2% but train operators have been allowed to raise regulated fares by an average of nearly 5% and unregulated fares by as much as 11%. If there is a logic in bumping up fares at a time when the government is trying to encourage passengers to shift from road to rail, it is hard to see it.

 

The list of rip-offs is long and growing. The government preaches low inflation and encourages responsible pay settlements for its workers but it routinely pushes through big price rises of its own. Council tax bills are headed for another above-inflation rise. Britain’s dentists are the most expensive in Europe, thanks to the disintegration of National Health Service provision.

 

For banks, rip-offs are a way of life. Tomorrow they will go to court to defend themselves against the Office of Fair Trading’s charge that they fleeced £5 billion from customers with excessive overdraft charges. Buying goods in the high street is easy compared with their confusion marketing and hidden charges, all designed to make unjustified profits. Our YouGov poll today shows an overwhelming proportion of the pubic believes it is being ripped off.

 

Why is this? Competition is tough in the high street but barely exists in other areas. Even if consumers can switch firms, the tacit collusion among providers means many decide it is not worthwhile. Too often, as in the case of rail fares, customers are captive. They may be angry, but they are impotent.

 

When Gordon Brown became chancellor more than 10 years ago, he promised consumers a better deal through tough regulation and a beefed-up competition regime. His watchdogs have not had enough bite, so another promise was broken. Rip-off Britain is back.

 

Source: Sunday Times

 

 

Even though I am a devout capitalist and believe in the free market enterprise I believe that stuff like utilities, railways and so on should be taken out of private hands and re-nationalised

I believe that stuff like utilities, railways and so on should be taken out of private hands and re-nationalised

 

Spot on Craig.. There really is no justification whatsoever for the recent ludicrous price hikes in rail fares especially when you consider the utter chaos that occurred at the beginning of the month, I've heard that rail commuters are revolting and are refusing to pay the increases - good for them... As for N-Power, well, they're just beneath contempt.... <_< Not that I expect the others to be any better, I can foresee the likes of EDF and British Gas hiking up their prices as well sooner or later as they have done every other time... So much for "free choice" and "finding the best deal", the phrases 'price fixing' and 'market manipulation' spring to mind.... <_<

But half of npowers rise is due to tax increases as is the cost of petrol in this country being so expensive, I am all for monitoring prices but these two examples are at least partly the fault of the government, but I do think proces in restraunts and pubs for example are expensive when compared to prices say in Australia, where their minimum wage is similar to ours but prices are about half ours

Edited January 14, 200817 yr by kindagood

Even though I am a devout capitalist and believe in the free market enterprise I believe that stuff like utilities, railways and so on should be taken out of private hands and re-nationalised

 

Or better still they should not have been privatised in the first place circa 15-20 years ago.

But half of npowers rise is due to tax increases as is the cost of petrol in this country being so expensive

 

So what's the justification for the other half of the increase then.....? Pure profiteering mate, simple as..... The facts are this would not even be an issue if public utilities were back in the hands of the public sphere... The Tories had absolutely no fukkin' business privatising OUR national, public companies mate, that's the bottom line... It didn't take Einstein to figure out what it would eventually lead us to this point of rip-off prices and fares.....

 

And the most ridiculous thing in relation to Rail in particular, is that every bloody time these c/unts who run Network Rail get into trouble, it's ultimately the sodding taxpayer that bails them out to the tune of BILLIONS every year.... So, just why the hell, exactly, am I as a taxpayer bailing out a PRIVATE company so a bunch of City slickers can get their quarterly share dividends...??? <_< <_< Nah, re-nationalise it, NOW..... :angry: