Skiurlaub- günstig mit FeWo-direkt
Bundesliga-Tickets mit Garantie!

Espresso der Extra-Klasse

Hotelsuche in 

1ST LEAD Report: Britain faces longest fall in living standards since 1950s By Bill Smith, dpa

By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
London (dpa) - Ordinary British people face the longest fall in living standards since the 1950s, if the government‘s downgraded growth projections prove accurate, a social policy think tank said on Thursday.

The new projections forecast average growth of 1.4 per cent over the next five years, meaning Britain‘s economy could be 72 billion pounds (94 billion dollars), or 3.4 per cent, smaller in 2021 than was projected in March 2016, the last forecast before Britain voted to leave the European Union.

"The current income squeeze is set to be longer - though shallower - than the post-crash squeeze, with real household disposable incomes set to fall for an unprecedented 19 successive quarters between 2015 and 2020," the Resolution Foundation said.

It said recent changes to tax and benefit policies will "put downward pressure on living standards and upward pressure on inequality," with the poorest one-third of households likely to lose an average of 715 pounds annually by 2021, and the richest one-third gaining an average of 185 pounds.

"Families are now projected to be in the early stages of the longest period of continuous falls in disposable incomes in over 60 years - longer even than that following the [2008] financial crisis," said Torsten Bell, director of the Resolution Foundation.

In a budget speech on Wednesday, Chancellor of the Exchequer Philip Hammond promised to support a huge expansion of housing construction and help small businesses and high-technology firms to "build on the strengths of the British economy."

Bell welcomed the focus on housing, a "key issue of intergenerational concern."

But he said the exemption of first-time buyers from a purchase tax, or stamp duty, for homes costing less than 300,000 pounds was "a very poor way to boost home ownership."

Another think tank, the Institute for Fiscal Studies, said the new forecasts "make pretty grim reading," while a front-page headline in Thursday‘s Financial Times warned that a "grim outlook overshadows [the] housing drive."

"The immediate effects of all this on households is already being felt," Paul Johnson, the institute‘s director, said in a briefing.

"Real earnings are falling this year as inflation has risen to 3 per cent," Johnson said.

The government‘s forecast that earnings could still be below the 2008 level in 2022 was "truly astonishing," he said, adding that he hoped the forecast "turns out to be too pessimistic."

The government‘s Office for Budget Responsibility said it expects growth to slow over the next two years "as public spending cuts and Brexit-related uncertainty weigh on the economy," before it "picks up modestly thereafter as productivity growth quickens."

In a regional report last week, the International Monetary Fund also lowered its forecast for Britain‘s annual GDP growth to 1.7 per cent this year, down 0.4 percentage points from its forecast in April.

The IMF said it expected Britain‘s GDP to expand by 1.5 per cent in 2018 and 1.6 per cent in 2019, "as Brexit has started to weigh on growth."


Kommentare zu diesem Artikel
Neuer Kommentar
Name *
Email * (wird nicht öffentlich angezeigt)
* Pflichtangaben
Diesen Artikel empfehlen

Absender Empfänger Nachricht (optional)

Weitere Artikel zu diesem Thema
London (dpa) - The British government has earmarked an additional 3 billion pounds (3.9 billion dollars) to prepare for "every possible outcome" on Brexit, Chancellor of the Exchequer Philip Hammond said."We have already invested almost 700 million
Moscow (dpa) - Russia and Venezuela signed a deal on Wednesday for Moscow to restructure 3.15 billion dollars of Venezuelan debt, as the crisis-hit South American country teeters towards default.Cash-strapped Venezuela insisted earlier this week that
Istanbul (dpa) - President Recep Tayyip Erdogan voiced criticism of the Turkish central bank, blaming its monetary policy for above-target inflation rates and saying higher interest rates were also hurting investment. "They say the central bank is
London (dpa) - Prime Minister Theresa May plans to meet leaders of business groups from across the European Union on Monday to discuss "shared opportunities for industry" as Britain leaves the EU.May will speak at the meeting about "the mutual
Berlin (dpa) - Germany‘s biggest union IG Metall launched a drive on Wednesday for a hefty 6 per-cent wage hike combined with a cut in working hours as the nation‘s economy heads towards its fastest growth rate in about six
London (dpa) - Ordinary British people have faced the longest fall in living standards since the 1950s, based on the government‘s downgraded growth projections, a social policy think tank said on Thursday. The new projections forecast average
Tipps der Redaktion aus dem Nachrichtenportal
Berlin (dpa) - The leader of Germany‘s centre-left Social Democrats (SPD) has advised his party‘s leadership to approve entering coalition talks with Chancellor Angela Merkel‘s conservatives.The move is highly unpopular among some
Brussels (dpa) - EU leaders gave the go-ahead on Friday for talks to begin on future relations with Britain, and called on London to spell out its expectations for life after Brexit. "EU leaders agree to move on to the second phase of Brexit talks.
London (dpa) - Prime Minister Theresa May thanked European Union leaders for giving Britain the go-ahead to move on to phase two of Brexit talks."Thank you to Presidents [Jean-Claude] Junker and [Donald] Tusk. Today is an important step on the road
Berlin (dpa) - German Justice Minister Heiko Maas said Friday that it is "urgently necessary" for the children of Muslim asylum seekers to be educated about the mass murder of Jews under the Nazi regime.In an editorial in Spiegel magazine, Maas wrote
Brussels (dpa) - Luxembourg has decided to appeal an order by the European Commission that it must collect around 250 million euros (295 million dollars) in back taxes from US online retail giant Amazon, the country said on Friday.The commission said
Brussels (dpa) - Britain has made "sufficient progress" in clarifying three key Brexit issues, the bloc‘s leaders said Friday, giving the go-ahead for talks to begin on post-Brexit relations."EU leaders agree to move on to the second phase of
Tipps der Redaktion aus dem Reiseportal
Seoul (dpa) - An overview of venues to be used to the Pyeongchang Winter Olympic Games in 2018.Pyeongchang Mountain ClusterLocated around 180 kilometres east of Seoul in the Gangwon province. Here there is the 35,000-capacity Olympic stadium for the
Frankfurt (dpa) - Germany will be unable to host an Olympic Games inside the next decade but the subject will not remain closed, a leading official has said."The overall topic of a potential bid has rather a mid- or long-term character," German
Pyeongchang, South Korea (dpa) - The International Olympic Committee advanced plans on Thursday to set up an independent anti-doping testing system following the drugs scandal in Russian sports.The World Anti-Doping Agency (WADA) is also set to
Berlin (dpa) - Medals at the Tokyo 2020 Olympic Games will be made from recycled material as local organizers called on the Japanese population to donate "discarded or obsolete electronic devices" for the purpose."The organizing committee aims to
The Olympic spirit is perhaps best in evidence when, for a brief, shining and historical moment, an outsider from a small nation grabs the glory with their first-ever medal.Rio de Janeiro (dpa) - Tears of joy, being overcome by emotion, instant fame,
Budapest (dpa) - Hungarian Premier Viktor Orban, currently attending the Rio Olympics, put in a word for Budapest‘s bid to host the 2024 summer games, promising a compact venue that would make "one large Olympic park" of Hungary‘s capital


(15.12.2017 14:56)

0 / 4 °C

-3 / 1 °C
-3 / 1 °C
powered by
Stock News





© europe online publishing house GmbH, Weiden, Germany, | Impressum