Living standards Goodbye to the good life 16 November 2011 by Gavin Kelly and James Plunkett In the three months from July to September, Britain’s economy actually grew—by 0.5 per cent. That performance was less bad than many had feared, and some have seized on it as a source of hope. For Chancellor George Osborne it was a “positive step… laying the foundations for the future success of the country.” Even … Continued READ MORE
Labour market America’s skills crisis carries lessons for Britain 10 September 2011 by James Plunkett Yesterday’s FT contained one of those ominous stories that only grow in significance over time – the findings of a survey by Nielsen that reveals a huge, looming skills shortage in the US as the baby boomer generation retires. In the next five years, America’s top 100 industrial companies face an average training bill of … Continued READ MORE
Labour market Squeezed households will need higher wages 26 August 2011 by James Plunkett While Libya takes the spotlight, the British economy wheezes in the dark. Monday’s survey from Markit showed household finances worsening at their fastest rate since early 2009. Yesterday, a new poll from the Resolution Foundation confirmed that picture. Half of all low-to-middle income households say they’re running out of cash each month; only one in four are … Continued READ MORE
Economy and public finances Household finances are a ‘millstone’ around the neck of recovery 25 August 2011 by James Plunkett A new poll out today from the Resolution Foundation confirms the extent to which poor household finances are now exerting a downward pull on the UK economy. The poll, carried out for the Foundation by ipsos MORI, finds that almost half of all people on low-to-middle incomes now say have no cash left over at the end … Continued READ MORE
Living standards Low growth implications for living standards particularly bleak 26 July 2011 by James Plunkett This morning’s weak Q2 stats (pdf) would be worrying in any recovery. But in the aftermath of such a deep fall in output their implications for real trends in living standards are particularly bleak. The UK economy still has a long way to climb back to pre-recession levels of output. Chart 1 below (now updated from a recent post to … Continued READ MORE
Economy and public finances A gloomy prognosis for Q2 growth stats 22 July 2011 by James Plunkett Next Tuesday the ONS releases its first estimate of second quarter UK GDP growth. It may be a slight exaggeration to call it a ‘make or break’ moment for the Chancellor but ‘make or brake’ might not be a bad description. After six months of no growth another three months of flat GDP would strengthen … Continued READ MORE
Living standards Britain’s Recovery Rests On The Shoulders Of Suburbia 30 June 2011 by James Plunkett Enfield, North London is trademark British suburbia. Middle-income but with patches of poverty and patches of wealth, the high street is dominated by chain stores and a scattering of chain-owned pubs. On first sight, there are few signs here that the UK is recovering slowly from a deep recession. But look closer and things don’t … Continued READ MORE
Economy and public finances Inflation hits work incentives 14 June 2011 by James Plunkett New inflation stats are out tomorrow and they’re expected to show further rises in CPI and RPI. Aside from their brief peak in 2008, headline rates of inflation are now at their highest levels for 19 years. That’s prompting more discussion about the way rising prices are playing out for Britain’s households, from a nice graphic … Continued READ MORE
Economy and public finances The growing need for a policy response to the ‘new inflation’ 1 June 2011 by James Plunkett There’s been much debate on these pages about the political implications of higher inflation. Ironically, this morning’s news of record food prices could relieve the pressure on the Bank of England Governor. His argument for caution when it comes to a rate rise is based on the claim that UK inflation is now being driven by events … Continued READ MORE
Economy and public finances Why GDP growth does not mean recovery for everyone 27 May 2011 by James Plunkett It’s fairly widely assumed that the outcome of the next election will pivot on the strength — or otherwise — of Britain’s economic recovery. But what kind of recovery are we seeking? The perceived wisdom suggests that the key figure to look out for is strong and sustained GDP growth. Other stats — like those … Continued READ MORE
Economy and public finances Tough news for living standards from the OBR 24 March 2011 by James Plunkett Yesterday’s budget had been pre-billed as a boost to living standards, and in particular as targeting the ‘squeezed middle’. Of course, for most in the group this was always going to be small beer in comparison to the impacts from last year’s Spending Review and emergency budget. But overall, did yesterday bring good or bad … Continued READ MORE
Economy and public finances Osborne the reformer is an unfinished work 24 March 2011 by James Plunkett One interesting aspect of today’s Budget is the government’s change of tack on personal allowances. Back in June 2010, when the Chancellor committed to raise allowances from £6,475 to £7,475, he chose to cancel out the gains for higher rate taxpayers by lowering the level at which the 40p tax rate kicks in. The idea … Continued READ MORE
Economy and public finances Three charts that complicate a simple focus on growth 28 February 2011 by James Plunkett [Extract] GDP growth figures have become the barometer of choice for commentators trying to tell the political weather – a good measure of how the public will eventually fall in the faceoff between Osborne and Balls. The story goes that a return to sustained growth will mean a return to rising living standards. That means … Continued READ MORE
Living standards Sitting in the middle 28 February 2011 by James Plunkett Yesterday at the Resolution Foundation we launched a wide-ranging investigation into the pressures now facing low-to-middle earners. The Commission on Living Standards will focus on the long-term economic trends that are changing the reality of life for those on low-to-middle incomes in Britain, writes James Plunkett It will bring together leading thinkers, from major employers … Continued READ MORE
Living standards The type of social mobility no-one talks about 4 February 2011 by James Plunkett Ed Miliband today addressed the issue of social mobility in a speech in Gateshead. His argument was built around the concept of the ‘British Promise’ – the idea that each generation of children will do better than their parents. It’s our own rather less lofty version of the American Dream, and it’s a promise, he … Continued READ MORE
Living standards Considering income alone is never enough when looking at living standards 3 February 2011 by James Plunkett The Independent reported yesterday that ‘middle England’ will be ‘hit hardest’ by upcoming changes to taxes and benefits. Research commissioned by the paper finds that families in the £40k-£50k bracket are set to suffer a four-way hit from: The reduction of the 40p tax threshold; A rise in NICs rates; A sharper taper on tax credits; and … Continued READ MORE
Living standards The King’s Speech: Governor’s “bigger picture” isn’t big enough 27 January 2011 by James Plunkett Bank of England Governor Mervyn King yesterday acknowledged that Britain’s households are now facing the toughest squeeze on living standards since the 1920s. His comments echo the findings of our report Squeezed Britain, which revealed in December that, on the basis of Office for Budget Responsibility (OBR) projections, the average low-to-middle income family will be £720 poorer in 2012 than they were … Continued READ MORE
Living standards The real threat to living standards for those on low to middle incomes 1 December 2010 by James Plunkett Defining the squeezed middle will be difficult – but there is a real threat to living standards for those on low to middle incomes. Ed Miliband’s attempt to define the ‘squeezed middle’ has made some people question the point of the term. Liam Byrne tried again yesterday to pin down the concept. But the big question … Continued READ MORE
Economy and public finances It’s rising prices as much as spending cuts that will give the Coalition a political headache 16 November 2010 by Gavin Kelly and James Plunkett It’s rising prices as much as spending cuts that will give the Coalition a political headache. Last Wednesday, Bank of England Governor Mervyn King forecast that inflation would remain above its 2% target until at least the end of 2011. British Gas has just announced a 7% price hike. It all bodes ill for the … Continued READ MORE
Economy and public finances Low income earners will bear the brunt of the cuts 21 October 2010 by James Plunkett To protect those at the very bottom, those in work, but on low and modest incomes, are being asked to make sacrifices Thanks to Danny Alexander’s spotless car windows, we have already had a sneak-peak of two pages of today’sspending review. It’s hardly news: 490,000 public sector jobs will go. But the pages also reveal coalition … Continued READ MORE
