Displaying items by tag: Resolution Foundation

In August, high inflation led to increased government finances, creating pressure on Chancellor Jeremy Hunt to boost support for state services, according to the Resolution Foundation. Government borrowing for August was £11.6 billion and nearly £70 billion for the first five months of the current fiscal year. This left the Chancellor £11.4 billion better off for 2023-24 than March's official forecasts had predicted. The Resolution Foundation noted that while higher inflation had led to increased tax payments, it had strained public services with pre-inflation budget allocations, making future public service cuts less tenable. Conservative backbenchers have opposed increasing department budgets in favour of tax cuts, while former prime minister Liz Truss has advocated tax cuts to stimulate economic growth. The borrowing figures highlight the need to manage inflation and government finances.

With inflation rising, young people are feeling the pinch more than ever. In a national poll conducted at the beginning of 2022, which involved more than 11,000 people, London came out bottom - with just 37% of Londoners saying they felt their rent was affordable. There is also a gender gap, with 1/3 of women in London spending over 50% of their salary on rent, compared with 1/4 of men. See The Resolution Foundation said the dramatic increase in global oil and gas prices was forecast to push UK inflation above 8% this spring, causing average incomes across Britain to fall by 4% in the coming financial year. That is worth £1,000 per household, the biggest annual decline since 1975. It warned chancellor Rishi Sunak that urgent steps were required to help the poorest families in Britain with soaring living costs, adding that weak wage growth and high inflation would drive more children into poverty.