Jeremy Hunt painted a gloomy picture of recession and falling living standards as he announced a £55 billion combination of tax rises and spending cuts to stabilise the public finances.
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The government's independent forecaster, the Office for Budget Responsibility, says that disposable household incomes will fall by 7% over the next two years, the biggest drop in living standards on record.
Most of the spending cuts are delayed for two years until after the next general election.
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The government's independent forecaster, the Office for Budget Responsibility, says that disposable household incomes will fall by 7% over the next two years, the biggest drop in living standards on record.
Most of the spending cuts are delayed for two years until after the next general election.
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Follow us on Instagram - https://www.instagram.com/Channel4News
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Francisco Gimeno - BC Analyst The European continent has been affected as many other countries by the inflation causing higher costs of life, and energy and chain supply issues. Even in the EU itself some countries have been more affected (e.g. Germany) than others (Spain, Italy) in its macroeconomy, but the citizens' pockets are emptying rapidly. Curiously the UK is having even worse numbers on inflation, costs of life, businesses costs, any economic or financial sector. And the trend is not stabilising yet for UK even with a new government trying to do its best. This is causing (like in other places in Europe) a tremendous fall in quality of life not seen since decades ago, with normal people unable even to save a penny, less buying even meat or fish as they were used to. Yes, it is bad and pessimistic to say this but it is also a reality. Now depending on global economy and own country's policies this gloomy period will be long or short. Well, the stage of abundance economy in Western Hemisphere has stopped if not disappeared. Now, let's adapt, pass through and come out from this as good as we can.