RT.com
19 Mar 2023, 11:43 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 Hong Kong Herald 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 Hong Kong Herald.
More InformationWASHINGTON, D.C.: Nearly 87,000 Americans died from drug overdoses in the 12 months ending September 2024, a 24 percent drop from the...
HONG KONG: Hong Kong is set to cut 10,000 civil service jobs and freeze public sector salaries as part of a cost-cutting initiative...
TAIPEI, Taiwan: Taiwanese authorities are probing a Chinese-crewed cargo ship suspected of damaging an undersea communications cable...
BEIJING, China: Alibaba has made its video- and image-generating AI model, Wan 2.1, publicly available, marking a significant step...
CAPE TOWN, South Africa: An international summit on global poverty faced setbacks this week as key finance leaders skipped the G20...
BANGKOK, Thailand: Chinese authorities said they started live-fire military exercises in the Gulf of Tonkin this week, just days after...
NEW YORK, New York - U.S. stocks dived, then partially recovered Tuesday as 25 percent import duties on goods from Canada and Mexico...
AUSTIN, Texas: Tesla has taken a key step toward launching its long-promised robotaxi service by applying for a transportation permit...
WASHINGTON, D.C.: Contracts to buy previously owned homes in the U.S. fell to a record low in January due to high mortgage rates and...
NEW YORK CITY, New York: A routine banking transaction at Citigroup last April turned into a major blunder when the bank mistakenly...
NEW YORK, New York - U.S. and Canadian stocks sank Monday, weighed down by President Donald Trump's looming trade tariffs. The introduction...
CAPE CANAVERAL, Florida: A new private lunar mission is on its way to the moon, as Intuitive Machines launched its second lander, Athena,...