RT.com
19 Mar 2023, 16:13 GMT+10
Households will get poorer and pay more tax over the coming years, a think tank projects
Real wages in the UK will not return to their 2008 level until 2026 despite an easing of inflation, the Resolution Foundation, an independent think tank, reported this week in its analysis of the new budget.
According to the report, the country is on track for a "disastrous decade" of stagnant incomes and high taxes, with cuts to public services.
The publication highlighted that real wages fell at an annual rate of 3.9% in January, noting that the bigger picture for wages is "one of long-term pay stagnation."
The decrease in household disposable incomes this year and next are the worst in a century, the think tank stressed.
"Britain's economy remains stuck in a deep funk - with people supported into work but getting poorer, and paying more tax but seeing public services cut," it wrote.
The UK is forecast to have gone through "the biggest energy and inflation shock since the 1970s, while avoiding a recession, with unemployment peaking at just 4.4%," Resolution Foundation added.
According to the study, taxes as a share of GDP are expected to hit 37.7% by the end of the forecast period, representing a 70-year-high and a 4.7% increase since 2019-2020.
The freeze on income tax thresholds since 2022-23 means that typical households will be worse off by Pound 1,110 ($1,337) by 2027-28 when the freeze ends, it noted.
Torsten Bell, chief executive of the Resolution Foundation, stated that "Jeremy Hunt's first budget was a much bigger affair than many expected, combining improvements to the dire economic and fiscal outlook with a significant policy package aimed at boosting longer-term growth in general, and the size of the workforce in particular.
"But stepping back, the UK's underlying challenges remain largely unchanged. We are investing too little and growing too slowly. Our citizens' living standards are stagnant. We ask them to pay higher taxes, while cutting public services," he concluded.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Baton Rouge Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Baton Rouge Post.
More InformationTOKYO, Japan: This week, Toshiba revealed that a tender offer worth US$14 billion from Japan Industrial Partners (JIP) was a ...
HANOI, Vietnam: While the European Union (EU) is set to impose tariffs on its Chinese rivals, Vietnamese electric vehicle (EV) ...
BEIJING, China: In a country where weddings are traditionally grand and expensive events, China's wedding industry, estimated at some US$500 ...
PARIS, France: Amid the imminent launch of the iPhone 15, unions representing Apple store workers in France have called for ...
SEATTLE, Washington: To expand its next-day delivery services for shoppers, Amazon said it plans to hire 250,000 more U.S. workers ...
NEW YORK, New York - U.S. stocks weakened on Friday as U.S. Treasury yields continued to point higher while some ...
NEW YORK CITY, New York: Speaking to reporters in New York on September 22, Taoiseach Leo Varadkar said if Russian ...
NAYPYIDAW, Myanmar - Aung San Suu Kyi, Myanmar's imprisoned former leader, suffers from low blood pressure symptoms such as dizziness ...
DHAKA, Bangladesh - In a tragic incident that shook the Rohingya camp at Ukhiya in Cox's Bazar, a group of ...
Islamabad [Pakistan], September 24 (ANI): The usage of substandard eye injections in Pakistan has been affecting the eyesight of people ...
At least 30 people were injured when a freight train and a passenger train collided in eastern Pakistan early Sunday.Authorities ...
Warsaw's stance on military assistance to Kiev is unclear following ambiguous statements from Polish officials, Bloomberg saysWashington wants Warsaw to ...