Post by northwestman on Nov 17, 2022 18:19:38 GMT 1
OBR: Eight years of living standards growth wiped out in 7% fall.
As Hunt sat down, the Office for Budget Responsibility released its latest economic and fiscal outlook.
It’s grim.
The OBR says that despite the new support with energy bills, living standards are going to fall by 7% over the next two years.
That’s a dire outcome, wiping out eight years of growth.
The OBR says:
Over £100bn of additional fiscal support over the next two years cushions the blow of higher energy prices – but the economy still falls into recession and living standards fall 7% over two years, wiping out eight years’ growth.
Over the medium term, around £40bn in tax rises and spending cuts – in roughly equal measure – offsets higher debt interest and welfare costs and gets debt falling as a share of GDP.
The fall in living standards next year will be the biggest on record, so since at least the mid-1950s, the OBR adds:
On a fiscal year basis, RHDI per person (a measure of living standards) falls by 4.3% in 2022-23, which would be the largest since ONS records began in 1956-57.
That is followed by the second largest fall in 2023-24 at 2.8%.
This would be only the third time since 1956-57 that RHDI per person has fallen for two consecutive fiscal years – the last time this happened was in the aftermath of the global financial crisis.
The Guardian.
As Hunt sat down, the Office for Budget Responsibility released its latest economic and fiscal outlook.
It’s grim.
The OBR says that despite the new support with energy bills, living standards are going to fall by 7% over the next two years.
That’s a dire outcome, wiping out eight years of growth.
The OBR says:
Over £100bn of additional fiscal support over the next two years cushions the blow of higher energy prices – but the economy still falls into recession and living standards fall 7% over two years, wiping out eight years’ growth.
Over the medium term, around £40bn in tax rises and spending cuts – in roughly equal measure – offsets higher debt interest and welfare costs and gets debt falling as a share of GDP.
The fall in living standards next year will be the biggest on record, so since at least the mid-1950s, the OBR adds:
On a fiscal year basis, RHDI per person (a measure of living standards) falls by 4.3% in 2022-23, which would be the largest since ONS records began in 1956-57.
That is followed by the second largest fall in 2023-24 at 2.8%.
This would be only the third time since 1956-57 that RHDI per person has fallen for two consecutive fiscal years – the last time this happened was in the aftermath of the global financial crisis.
The Guardian.
