• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home News Finance

Think-tank warns over £575 yearly blow to households after ‘grim’ forecast

The Resolution Foundation said this came before the impact of the coronavirus is factored in.

Joe Mellor by Joe Mellor
2020-03-12 10:34
in Finance, News
Credit;PA

Credit;PA

FacebookTwitterLinkedinEmailWhatsapp

Every household will suffer a £575 annual blow due to the slump in the economic growth forecast, even before the impact of the coronavirus is factored in, a respected think-tank has warned.

The Resolution Foundation said the GDP markdown from the Office for Budget Responsibility (OBR) financial watchdog was both “incredibly grim and yet still unbelievably optimistic”.

Chancellor Rishi Sunak used his Budget to inject £30 billion in supporting the economy and softening the blow of the Covid-19 sickness ahead of the Government’s expected ramping up of measures on Thursday.

The OBR warned that a “recession this year is quite possible” if the virus causes “widespread economic disruption”, and predicted falling growth even before the coronavirus impact is reflected.

OBR assesment

In its overnight assessment, the Resolution Foundation living standards think-tank delivered a stark warning over the OBR assessment, warning of “more difficult budgets ahead” for the Chancellor.

Chief executive Torsten Bell said: “The OBR managed to deliver an incredibly grim, and yet still unbelievably optimistic, pre-pandemic markdown to the UK’s economic outlook – dealing a £600 a year hit to every household in Britain.

PA Graphic
(PA Graphics)

“In reality, once we take the economic impact of coronavirus into account, this is the weakest official growth outlook on record.

RelatedPosts

Archie Battersbee dies in hospital, mother announces

‘Be sure to be sitting down’: Shocking forecasts show how high Energy bills cap could go

Star captured on $10 billion James Webb Space Telescope is actually a slice of chorizo

Hundreds of thousands of people join ‘Don’t Pay’ campaign as energy bills soar

“And having finally returned to peak pay this year, real wage growth is set to weaken every year of the forecast period.”

Before the impact of coronavirus is seen, growth was expected to fall to 1.1% in 2020, down from 1.2% last year and dramatically lower than the OBR’s previous estimate of 1.4%.

Today's Budget combined a £12 billion package to tackle coronavirus with much bigger spending increases to end austerity, but came against a backdrop of an incredibly weak economic outlook, says RF Chief Executive @TorstenBell pic.twitter.com/sj0n74ydYg

— Resolution Foundation (@resfoundation) March 11, 2020

The Resolution Foundation said the forecast leaves the economy £8.6 billion smaller in 2020 than anticipated last year, representing a £310 slump per household, with this drop rising to £575 in 2023.

The think-tank also warned of “big income shocks” for self-isolating workers with two million low-paid employees still lacking Statutory Sick Pay entitlement.

Later on Thursday, the influential Institute for Fiscal Studies think tank is to give its full verdict on the Budget.

Boris Johnson was also expected to announce after a Cobra meeting that the UK would move into the next phase of efforts to combat the coronavirus by seeking to delay the spread.

The Prime Minister’s plans may include encouraging employees to work from home, shutting schools and advising elderly people to stay away from social contact.

This Budget package looks like the largest planned sustained giveaway since Norman Lamont’s pre-election Budget in 1992 and modestly greater than Gordon Brown’s 2000 Budget.#Budget2020 pic.twitter.com/3toU2VnpYG

— Office for Budget Responsibility (@OBR_UK) March 11, 2020

Mr Sunak said he was taking a “prudent” approach to the public finances despite a Budget that amounted to the biggest giveaway since 1992.

He told the BBC: “I make absolutely no apology for responding in the short term in scale to the immediate threat that we face from coronavirus.”

Investment

Mr Sunak conceded the growth forecasts were weak but he insisted sustained investment can fix this.

“I want to see higher growth in this country,” he told BBC Radio 4’s Today programme on Thursday.

“And that’s why we set out an economic plan yesterday which involves a significant step-change in the amount of money we invest in capital and infrastructure in this country.”

But he admitted there is a risk to the high-borrowing strategy.

He said: “You’re absolutely right, you have to make a judgment about the persistence of low interest rates, that’s a judgment I have to make as Chancellor.

“The reality is these interest rates have stayed lower for longer than anyone expected and keep falling, and it’s right that I as someone in charge of managing our public finances has a view on that.”

Related – Chancellor may have to rethink spending if economy slowdown continues – IFS

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

5 Common Fitness & Diet Fails

UK Weather forecast, Friday 22 October 2021

Angela Rayner exposes Rishi Sunak’s attempted whitewash in blistering thread

Johnson lashes out at ‘excessively burdensome’ Brexit red tape in Northern Ireland

Starmer calls Scottish Indy vote ‘divisive’ as polls find majority of Scots now support independence

Competition: Win tickets to the opening night of the new-look City of London Distillery

RSPCA hunting cruel yobs who set fire to a cat in sick Halloween prank

Former black watch sergeant forced to wait more than a year for routine op

These are the top 20 perks Brits want from employers

Garlic could ward off hospital superbugs, a new study revealed

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.