IFS warns of fall in household incomes

The Institute for Fiscal Studies (IFS) has warned that household incomes will see their biggest drop in generations following the Autumn Statement.

The Institute for Fiscal Studies (IFS) has warned that household incomes will see their biggest drop in generations following the Autumn Statement.

The think tank warned that growth in living standards had been weak since 2008 and that it was now going from 'bad to worse'.

Paul Johnson, Director of the IFS, said:

'Jeremy Hunt's first fiscal event as Chancellor was a sombre affair. Surging global energy prices have made the UK a poorer country. The result is an OBR forecast that the next two years will see the biggest fall in household incomes in generations.

'Unsurprisingly given the cost-of-living crisis, today's Office for Budget Responsibility forecast suggests that this is going from bad to worse. This year we are set to see the largest fall in real household disposable income per head since the late 1940s

'As ever, the forecasts are uncertain. The government's finances could end up much healthier than expected. But if the outlook deteriorates further then Jeremy Hunt really has not left himself with much room to manoeuvre.'

Internet link: IFS website


© 2024 Stables Thompson & Briscoe Ltd. All rights reserved.

Registered in England | Company number 6329610 | Registered office: 87 Hayclose Crescent Kendal LA9 7NT
We use cookies on this website, you can find more information about cookies here.