People are paying more tax but seeing public services cut, says thinktank
Graham Watson's insight:
Phillip Inman notes, with an unnecessary degree of glee, that the net result of economic stagnation and rising taxes is going to see taxes as a share of GDP reach a 70 year-high and low- and middle-income families with ever less disposable income.
And what's worse, despite paying more tax, we'll be in receipt of ever fewer public services in real terms. Happy days! Alternatively, you might have thought this sort of thing would serve as a trigger for a national conversation about plotting a way forward.
Resolution Foundation says UK only halfway through two-year cost of living crisis, with only very richest likely to see income rise in 2023-24
Graham Watson's insight:
The Resolution Foundation have forecast that there's going to be an extended cost of living crisis, and that average household incomes are going to fall by £2,000 per year by April 2024. Factor in rising mortgage repayments and energy bills, amongst other things and people are going to feel the pinch.
This have obvious implications for economic growth, and other macroeconomic objectives, as well as for standards of living.
Disposable household incomes will fall 7% and are not likely to recover for six years.
Graham Watson's insight:
The OBR's take on the next two years make for exceptionally grim reading: disposable household incomes down by 7% and not expected to recover for six years. Wowsers!
Of course, the prospect of a recession is even worse for those on low incomes, and I'm struggling to see why any young undergraduate would, out of choice, want to enter public sector employment given the rates of pay growth there.
The Resolution Foundation says households face a £1,200 hit due to higher taxes and energy bills.
Graham Watson's insight:
The Resolution Foundation is forecasting that 2022 will see millions of families see a fall in their disposable incomes as a result of higher taxes and energy bills. And what does this imply about any future coronavirus recovery?
Proof, if it were needed of the fatuous nature of any claim that 'we're all in this together'.
Total retail sales jumped by almost 7% but price rises meant shoppers bought less but spent more.
Graham Watson's insight:
It seems that retail sales have proved remarkably resilient in December, with like-for-like sales standing up to pressure on household incomes, although higher prices helped cushion the blow.
Longer term, the Barclaycard data about higher spending on utility bills imply that consumer spending is going to be squeezed in the months ahead.
The Resolution Foundation thinktank forecasts a drop in living standards for a second year as the cost of living crisis deepens
Graham Watson's insight:
The Resolution Foundation has forecast that disposable incomes are going to fall by 3.8% in the year ahead. Additionally, with a significant rise in mortgage interest rates and energy bills, it's going to put a squeeze on household finances.
Cashflow hit by rising expenses amid surging bills and impact of Omicron, finds quarterly study
Graham Watson's insight:
It seems that disposable income, or rather disposable income after housing costs has declined. This can only mean one thing for economic growth you would have thought.
UK consumers could take £43bn hit as coronavirus crisis ravages UK economy
Graham Watson's insight:
This is what the future looks like - and it ain't pretty. The Centre for Economic and Business Research consultancy is forecastign a significant decline in household disposable income and, by definition, consumer spending such that retail sales are expected to fall by 10% for March. And that's only with one week of lockdown. Equally, the distributional effects of this aren't going to be evenly felt with the most vulnerable losing out to the greatest degree.
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Phillip Inman notes, with an unnecessary degree of glee, that the net result of economic stagnation and rising taxes is going to see taxes as a share of GDP reach a 70 year-high and low- and middle-income families with ever less disposable income.
And what's worse, despite paying more tax, we'll be in receipt of ever fewer public services in real terms. Happy days! Alternatively, you might have thought this sort of thing would serve as a trigger for a national conversation about plotting a way forward.