The Budget will hit living standards in the short-term as the government hopes to drive economic growth in the longer-term, according to the Resolution Foundation think tank.
Mike Brewer, interim chief executive of the Resolution Foundation, said, 'The short-term effect of these changes will be better-funded public services. But families are also set for a further squeeze on living standards as the rise in employer National Insurance dampens wage growth.'
The think tank cautioned that the Budget 'has not yet delivered a decisive shift away from Britain's record as a stagnation nation,' with weak growth and living standards ahead.
Real household disposable income per person is projected to grow by 0.5% a year on average across the parliament, impacting the poorest households more significantly.
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