UK living standards fall to lowest on record – RT Business News

The country is on the verge of avoiding a recession, but Britons are facing the highest taxes since World War II, according to an official report

Britons face the biggest drop in living standards since records began in the 1950s and the highest taxes since World War II as the economy grinds to a halt this year, the Office reported on Wednesday. of Budget Responsibility (OBR).

According to the report, real household disposable income, a measure of real living standards, will fall by 5.7% in fiscal years 2022-23 and 2023-24.

“Although this was 1.4 percentage points lower than expected in November, it would still be the largest two-year decline since records began in 1956-57,” says the report.

A spike in energy and consumer goods prices has triggered inflation, which currently sits above nominal wages and has led to a historic decline in disposable incomes, the OBR noted, adding that “This means that the real standard of living is still 0.4% below its pre-pandemic level.”

Living standards are not expected to return to pre-pandemic levels until 2028 and the tax burden remains on track to be the highest since World War II.

Great Britain “continues to see the tax burden reach a post-war peak of 37.7% of GDP over the forecast horizon in 2027-28, including the highest ratio of corporate tax revenue to to GDP since the introduction of the tax in 1965”, said the guard dog.

The UK economy is expected to contract by 0.2% this year despite government claims that the country should avoid a recession.

For more stories on economics and finance, visit RT’s business space

You can share this story on social media:

Leave a Comment