"Households are facing a "truly dismal" increase in their disposable income following the Budget, the Institute for Fiscal Studies (IFS) think tank says. The IFS points to analysis of the government's tax and spending plans by the Office for Budget Responsibility (OBR), which forecast that the average disposable income would grow by "only" 0.5% annually over the next five years. Disposable income measures the amount of money people have left to spend after taxes have been paid."
"IFS director Helen Miller said the growth was disappointing "especially when compared to the more than 2% per year we achieved across every parliament from the mid-1980s to mid-2000s". She said this had been another "big Budget", with "meaningful increases in tax, spending, and borrowing". According to the IFS, average disposable income per person is expected to rise by nearly 104 a year for the next four years, under current inflation forecasts."
The Institute for Fiscal Studies describes the expected post-Budget rise in household disposable income as "truly dismal", citing Office for Budget Responsibility forecasts that average disposable income will grow only 0.5% annually over the next five years. Disposable income equals money left after taxes. That rate falls short of the more than 2% per year achieved across every parliament from the mid-1980s to mid-2000s. The Budget includes meaningful increases in tax, spending, and borrowing. Average disposable income per person is projected to increase by nearly 104 a year for the next four years under current inflation forecasts. Extension of income tax threshold freezes and a pension cap have prompted accusations of breaking manifesto pledges.
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