Mrs Truss has promised tax cuts for hard-hit households, but economists have warned she will need to go much further as recession fears grow. The Resolution Foundation said typical real incomes would be 7% lower at the end of the current parliament in 2024-25 than at the start in 2019-20, the “first time in history that Britain has become significantly poorer” in one term . It said the setback for households was due to compression inflation, as well as 15 years of economic stagnation caused by weak productivity growth. It came as household confidence plunged into “free fall” as Britain braces for an unprecedented rise in energy bills this winter. The confidence index, produced by Bank of America, suffered its biggest monthly drop since the first lockdown and is at its lowest level since November 2020. British economist Robert Wood said: “Critical for the economic outlook, consumers are more pessimistic about their personal finances from 2020, unemployment expectations are rising rapidly and spending is falling.” He said the gauge “may soon surpass the record low for our series set in April 2020.” Around 20% of UK manufacturers say high energy costs will remain for the next two years, with their own costs currently rising by 24% a year, according to research by lobbyist Make UK. Stephen Phipson, Chief Executive of Make UK, said: “While the industry has rebounded strongly over the last year, we are clearly heading into very stormy waters in the face of rising energy costs and a challenging international environment.”
title: “Profits To Collapse To 2003 Levels As Inflation Hits Living Standards Klmat” ShowToc: true date: “2022-11-23” author: “Viola Gomez”
Mrs Truss has promised tax cuts for hard-hit households, but economists have warned she will need to go much further as recession fears grow. The Resolution Foundation said typical real incomes would be 7% lower at the end of the current parliament in 2024-25 than at the start in 2019-20, the “first time in history that Britain has become significantly poorer” in one term . It said the setback for households was due to compression inflation, as well as 15 years of economic stagnation caused by weak productivity growth. It came as household confidence plunged into “free fall” as Britain braces for an unprecedented rise in energy bills this winter. The confidence index, produced by Bank of America, suffered its biggest monthly drop since the first lockdown and is at its lowest level since November 2020. British economist Robert Wood said: “Critical for the economic outlook, consumers are more pessimistic about their personal finances from 2020, unemployment expectations are rising rapidly and spending is falling.” He said the gauge “may soon surpass the record low for our series set in April 2020.” Around 20% of UK manufacturers say high energy costs will remain for the next two years, with their own costs currently rising by 24% a year, according to research by lobbyist Make UK. Stephen Phipson, Chief Executive of Make UK, said: “While the industry has rebounded strongly over the last year, we are clearly heading into very stormy waters in the face of rising energy costs and a challenging international environment.”
