, Paul Johnson, called the drop in money Brits have to spend after paying taxes 'simply staggering'. The bleak figure comes from the Office for Budget Responsibility's (OBR) report mentioned in the chancellor Jeremy Hunt's autumn statement today. The public body, which gives independent analysis of the UK's finances, said the UK is now in recession. Its report read: 'Rising prices erode real wages and reduce living standards by 7% in total over the two financial years to 2023-24 (wiping out the previous eight years' growth), despite over £100 billion of additional Government support. 'The squeeze on real incomes, rise in interest rates, and fall in house prices all weigh on consumption and investment, tipping the economy into a recession lasting just over a year from the third quarter of 2022, with a peak-to-trough fall in GDP of 2%.' Simply staggering numbers in OBR report. Real Household Disposable Income per person to fall more than 7% over next two years. Biggest fall on record. Taking incomes down to 2013 levels.— Paul Johnson (@PJTheEconomist) November 17, 2022 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video But, when Mr Hunt addressed Parliament today, he said the OBR confirmed 'because of our plans, the recession is shallower, and inflation is reduced'. He added: 'Unemployment is also lower with about 70,000 jobs protected as a result of our decisions today. 'Then, once growth returns, we increase the pace of consolidation to get debt falling. 'This further reduces the pressure on the Bank to raise interest rates because as Conservatives we do not leave our debts to the next generation.' The chancellor said his main priorities within the budget are){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
People’s real household disposable income is set to fall by more than 7% over the next two years.
This is the biggest fall on record, taking British incomes down to the same level as they were in 2013.
Director of the Institute for Fiscal Studies (IFS), Paul Johnson, called the drop in money Brits have to spend after paying taxes ‘simply staggering’.
The bleak figure comes from the Office for Budget Responsibility’s (OBR) report mentioned in the chancellor Jeremy Hunt’s autumn statement today.