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