Regular readers will know that I have long held the view that the economy as we know it was broken beyond repair during the 2007-08 financial crisis. Since then, we have been flogging a dead horse. That last century’s limited ideas of capitalism and socialism are now outdated concepts, unable to address the problems of the 21st century. Sure stock markets have performed well but that’s speculation, not the real economy. Make no mistake however – the real economy has not been able to fulfil its core function of making society work since the banking crash.

In 2008, the banks were bailed out, but not the people, leading to exponential growth in inequality and a growing distrust of the political elites and their sacred centre ground. Less than a decade later, this ushered in right-wing populist revolutions, making leaders out of clowns such as Donald Trump and Boris Johnson. In the long-term, it destabilised the fragile world order-giving rise to Vladimir Putin’s territorial aspirations, a weaker Europe and fueled British nationalist hubris, resulting in the economic disaster that is Brexit.

The right won the populist battle, with the aspiring hopes of the political left (Jeremy Corbyn/Bernie Sanders) unable to repel the inevitable onslaught of the right-wing mainstream media. Worst of all, world leaders universally decided to postpone action on climate change.

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So, here we are in 2022 – facing unprecedented threats on a global scale. Between the growing climate emergency, failing crops, rampant food inflation and shortages, forced economic migration, international security pressures, pandemics and increasing authoritarianism, it’s difficult to keep up.

The UK’s answer to impending catastrophe is to sit the summer out and install Liz Truss as PM next week. Truss seems to have no ideas but tax cuts to stimulate the economy. She doesn’t seem to have noticed that the Bank of England is simultaneously (and stupidly) raising interest rates to slow it down (stupidly as current price inflation is driven by cost, not demand). She has no choice but to intervene, but the new PM’s Thatcherite instincts will mean that her response will be too little and too late.

The Bank of England’s thinking is restricted as their economic mantra gives them no other tools, with the result being that the economy will slow just as wages need to rise to avert mass poverty. Even if reeling in consumer spending were the answer, raising interest rates now is pointless, as rising fuel costs will slow the economy and force a recession later this year or early in the next.

So far this year, typical household energy bills have risen from £1971 in April to £3549 this October; they are expected to rise again to £6000 in spring 2023. For those of you who understand the implications of the last sentence: can I suggest you breathe slowly into a paper bag until the panic subsides? For those who still do not comprehend the extent of the problem, let me explain. This will be an existential shock to the UK economy on a much larger scale than 2007 unless urgent and massive intervention happens within weeks – don’t hold your breath.

Already, rising household energy prices amount to a £44 billion increase in household energy costs. The predicted spring 2023 increase will raise energy bills by £113.5bn in a single year. In simple terms, this means that consumer spending in the real economy will fall by roughly the same amount, representing a mass transfer of wealth from the public to a few large corporations and their shareholders.

Small businesses and manufacturers, pubs, shops, cafes, takeaways, laundrettes, hotels and restaurants face existential threat as a huge chunk of their share of the nation’s economy will instead have been given to the power companies and their wealthy shareholders, while ordinary people struggle to pay their energy bills.

This will happen while those small businesses’ energy bills skyrocket even more rapidly, because commercial bills are not capped. This week alone, I have heard about a cafe in the Highlands whose energy bill has already risen from around £5000 to £54,000 and a garage in Edinburgh whose bill has gone from £17,000 to £80,000.

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These are not isolated cases and they are not just happening in Scotland. The Association of Convenience Stores, representing 48,000 local shops and 405,000 staff across the UK, has claimed that the average increase in energy bills for its members has already hit £45,000 and that thousands of shops will be forced to close. The BBC have reported on an Essex pub landlord whose energy bills have risen from £13,000 to £35,000 a year.

IT’S not Scotland’s place to deny the English people their choice of Prime Minister but it shouldn’t be England’s right to force such drastic decisions upon us. Luckily, Scotland has an escape route. An independent Scotland would be in the prime position to lead the global renewable energy revolution. It would also be able to slash household energy bills and offer businesses a low-energy-cost location.

With only 8.4% of the UK’s and 1% of Europe’s population, Scotland: l Possesses 25% of Europe’s offshore wind and tidal resources l Can access 10% of Europe’s wave power potential l Generates 85% of the UK’s hydroelectric power l Boasts 60% of the UK’s onshore wind capacity Renewables are the cheapest form of energy and fortunately for us, Scotland generated 97.4% of its electricity needs from renewables in 2020. The cost of onshore wind generation fell by 13% and offshore by 9% but still, our energy bills rise.

Why? Because Scotland is part of the UK, which continues to generate 40% of its power by burning expensive gas. With independence, Scotland’s energy market would be one where 100% of our energy needs could be met by renewables, while the punishing price rises of today would be a thing of the past.

Gordon MacIntyre-Kemp is the chief executive of Business for Scotland and the founder of the Believe in Scotland campaign