Big spike: Reeves tours a manufacturing facility in Driffield, England. The exchequer has been asked to reconsider raising certain taxes, amid warnings that rises in real disposable incomes will not compensate for the slump for the bottom 40% of households. — Reuters
LONDON: Living standards for Britain’s poorest households will take until 2027 to recover from the inflation shock, according to new analysis that underscores the difficulty facing the Labour government to meet its promise to make voters feel better off.
The National Institute of Economic and Social Research (NIESR) warned that predicted rises in real disposable incomes in 2025 and 2026 will not compensate for the recent slump for the bottom 40% of households. For this group, living standards will not return to pre-2022 levels until the end of 2027, the think tank said in forecasts published yesterday.
