Disposable Incomes Forecast To Fall

Financial Services firm Deloitte has warned that UK households will be £780 a year worse off, dueprimarily to government tax increases and rising inflation.  The report concluded that real earnings are likely to fall for the fourth consecutive year, the first time in over a hundred years, and that consumers would have no option but to reign in spending to balance the books.

Whilst some have suggested that the BOE should put interest rates up to curb inflation, Roger Bootle, Deloitte’s chief economic advisor, said that any such move would be counter-productive “Given high debt and given all the other pressures on consumers and given the state of the housing market, I think even a small increase in interest rates could prove to be very dangerous.”

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