UK Recession Wipes Out Eight Years of Family Income Growth
- Fiscal watchdog forecasts 7% drop in incomes by April 2024
- UK tax burden to hit highest level since World War II
The OBR said real household incomes will shrink by 7% over the two years to April 2024.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
Britain’s cost of living crisis will wipe out eight years of growth in household incomes in just 24 months and plunge the economy into a recession lasting more than a year, the government’s independent forecaster said.
The Office for Budget Responsibility said real household incomes will shrink by 7% over the two years to April 2024 despite £100 billion of government support. The economy is already in a recession that will see output contract by 2% and cost 500,000 jobs, it said.