Spring Statement 2022: UK to face biggest fall in living standards since records began

2.2% fall in 2022-23

Elliot Gulliver-Needham
clock • 2 min read
Sunak warned in his speech that the OBR report had not accounted for the full impact of the Russian invasion of Ukraine
Image:

Sunak warned in his speech that the OBR report had not accounted for the full impact of the Russian invasion of Ukraine

As Chancellor Rishi Sunak made his Spring Statement this afternoon, the Office for Budget Responsibility announced that inflation and tax rises will cause living standards to fall by 2.2% in 2022-23, the greatest fall since records began in 1956.

Sunak warned in his speech that the OBR report had not accounted for the full impact of the Russian invasion of Ukraine and "we should be prepared for the economy and public finances to worsen, potentially significantly". After news this morning that inflation hit 6.2% in February, the OBR said today that it expects inflation to average 7.4% this year. The Bank of England had previously warned that inflation could reach as high as 8%, but the OBR now sees inflation hitting a 40-year high of 8.7% in the fourth quarter of this year. Inflation is then predicted to fall to 4% in 2023 a...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

The fall in sales volumes over the month was because of food stores, which fell by 1.6%.
UK

UK retail sales slip in May as consumer confidence falls to lowest on record

Shoppers cut back on food spending

clock 24 June 2022 • 2 min read
"UK is at a crossroads"
UK

Average global funds hold a third less in the UK than before Brexit

Brexit risks still an issue for managers

clock 23 June 2022 • 4 min read
The UK Infrastructure Bank just surpassed its one year anniversary
ESG

UK Infrastructure Bank to move away from investing through fund managers - reports

Chief executive has come under pressure

Elliot Gulliver-Needham
clock 23 June 2022 • 2 min read
Trustpilot