The weakest decade of pay growth since the 1930s means real wages in the UK are set to fall again in 2022, with the foundation writing: “Real wages are on course to grow by just 2.4% from May 2008 to May 2024 – a far cry from the 36% real wage growth experienced between May 1992 and May 2008.” The foundation’s analysis found the Chancellor’s plans will mean by 2026-27 tax as a share of the economy will be at its highest level since 1950, amounting to a £3,000 increase per household since Boris Johnson became Prime Minister. The Resolution Foundation said this burden combined with higher growth, inflation and public spending than previously expected prompted it to warn “that Britain could be set for a flat recovery for household living standards”. The Office for Budget Responsibility (OBR) said the Budget would leave the overall tax burden at its highest since the final period of Clement Attlee’s post-war Labour administration 70 years ago.
Rishi Sunak’s Budget has the country set for a flat recovery for living standards amid fears the average household could see their tax rise by thousands of pounds during Boris Johnson’s premiership, a think tank has warned.
