Britain is on course for the longest period of falling living standards since records began in the 1950s, according to a report by the Resolution Foundation.
The think tank found that under plans set out by Philip Hammond in the Budget yesterday, the poorest third of households are set for an average loss of £715 a year by the end of the Parliament, while the richest third will gain an average of £185.
Liberal Democrat Leader Vince Cable commented:
“This analysis exposes the reality of Britain’s economic future under this Conservative government.
“The squeeze on pay and living standards is set to carry on until 2025, made worse by higher inflation since the Brexit vote.
“Meanwhile the Conservatives’ poor management of the economy means the budget will not be balanced until at least the 2030s.
“This was a truly regressive budget that maintained the deepest of the Conservatives’ welfare cuts, hitting the poorest third of households hardest.
“A Liberal Democrat budget would provide the large-scale investment in infrastructure, housing and research needed to boost living standards and productivity.
“We would reverse the Conservatives’ cruel welfare cuts, and bring economic certainty by staying in the Single Market and Customs Union.”