The Bank held interest rates as expected in its MPC meeting today (Thursday), with the real news coming from a welcome change in how it intends unwind Quantitative Easing (QE) and a gloomy outlook on the cost of living, the Resolution Foundation said today. James Smith, Chief Economist at the Resolution Foundation, said: “The Bank’s … Continued

CPI inflation rose to 3.1 per cent in August, up again from 2.9 per cent in July, in line with market expectations, driven largely by higher petrol and diesel prices, the Resolution Foundation said today (Wednesday). With price rises not expected to peak until the winter, the renewed climb has ramifications for families, the Bank … Continued

Pay growth in the private sector fell to 2.9 per cent on a cash basis in the three months to July, its joint lowest rate since October 2020, with wages set to shrink significantly in the second half of the year as inflation rises, the Resolution Foundation said today (Tuesday) in response to the latest … Continued

Responding to the Chancellor’s first major speech on the economy today, Sophie Hale, Research Director at the Resolution Foundation, said: “The Chancellor struck an upbeat tone in a speech that provided a welcome return to emphasising the importance of growth, making the case for greater public and private investment. “Reducing the discount rate the Treasury … Continued

Living standards in Aberdeen are now below the UK average for the first time since 2003, with the city’s wage premium having fallen by three quarters since the early 2010s. Debates about extracting the final oil and gas reserves therefore risk missing the bigger picture on where the city’s future employment will come from, the … Continued

No OECD rich country with a higher tax-to-GDP ratio than the UK in 2025 was able to achieve this without placing a heavier burden on middle earners, suggesting it is unrealistic to say we can have higher defence spending without higher taxes on such workers, the Resolution Foundation said today (Wednesday). Thin end of the … Continued

Output per hour has increased at a respectable annual rate of 1.1 per cent on average over the past two years, rather than the dismal 0.2 per cent fall implied by flawed official statistics, with the UK’s productivity recovery present throughout the economy rather than via an AI boom or a retail-and-hospitality bust, according to … Continued

Strong growth in the first half of the year has failed to deliver a public finances windfall for the Chancellor as the economic impact of the conflict in the Middle East takes its toll on borrowing costs, underlining the challenge he faces as he prepares for his first Budget, the Resolution Foundation said today (Friday). With the Budget now less than ten weeks away, today’s … Continued

CPI inflation rose to 2.9 per cent in July, up from 2.6 per cent in June, driven by July’s higher energy price cap, with further rises in inflation likely later this year. While widely anticipated, this uptick is unwelcome news for families, mortgagors and the Government – the Resolution Foundation said today (Wednesday). Today’s higher … Continued

Andy Burnham’s government has inherited a mixed bag labour market, with levels of employment, unemployment and inactivity flat in June, and pay growth only just staying ahead of inflation, the Resolution Foundation said today (Tuesday) in response to the latest ONS data. The latest data on jobs shows no major change, with levels of payrolled employment down marginally and unemployment remaining at 4.9 per cent. Much of the official data also carried a major health warning this … Continued

The UK economy grew by 0.4 per cent in the second quarter of 2026, slowing from the strong 0.6 per cent expansion in Q1 in line with economists’ expectations, the Resolution Foundation said today (Thursday). This slowdown from our bumper first quarter continued a multi-year trend of growth coming in fastest in Q1. Nonetheless, combined … Continued

Young people, particularly men, are spending more time alone today than a decade ago, driven by a shift to solo working as well as increased screen time, according to new Resolution Foundation research published today (Wednesday). All by myself – supported by the Economic and Social Research Council-funded (ESRC) Connecting Generations research programme – explores … Continued

A targeted energy discount scheme could save eligible households £175 and soften the impact of any further gas price shocks this winter. But the Government will need to act fast to have a scheme ready by January 2027, the Resolution Foundation warned today (Monday). Despite the Prime Minister’s welcome day-one VAT cut on electricity bills, … Continued

Commenting on the Prime Minister’s announcement today (Wednesday) confirming that the Fair Pay Agreement for social care staff will come into effect in April 2028, and that he’s looking to build more progression routes for staff into the NHS, Hannah Slaughter, Principal Economist at the Resolution Foundation, said: “Social care staff perform a vital service, … Continued

The new Prime Minister will need to redirect grants towards ‘council homes’, allow private developers to build fewer social rent homes and utilise low-cost loans to housing associations if he’s to deliver on his promise to build more council housing, according to new Resolution Foundation research published today (Friday). The latest Housing Outlook notes that … Continued

CPI inflation fell to 2.6 per cent in June, down from 2.8 per cent in May, a welcome fall that was slightly larger than expected, and hands the new Government some early breathing space of its own, but it is one that looks set to be short-lived as renewed tensions in the Middle East and … Continued

The Starmer Government has bequeathed a mixed record on the labour market to new Prime Minister Andy Burnham. 156,000 payrolled jobs have been lost and unemployment is 0.8 percentage points higher, but real pay packets have increased by £7 a week and gaps between the highest and lowest paying areas of the country having shrunk, … Continued

As Andy Burnham prepares to appoint his new Chancellor, the Resolution Foundation is publishing major new research today examining the role of the UK’s various public financial institutions (PuFins), and how they can be expanded to unlock billions of pounds’ worth of extra investment. The report is especially prescient given the new Prime Minister’s promise … Continued

A triple whammy of weak growth, an ageing population and rising ill-health since 2007 are costing Britain around £330 billion a year today – which is being offset by an unholy trinity of higher taxes, lower public services spending and more borrowing. The new residents of Downing Street need a bold new fiscal strategy to … Continued

Responding to the Interim Report of the Timms Review of Personal Independence Payment (PIP), Louise Murphy, Senior Economist at the Resolution Foundation, said: “This report shows that Personal Independent Payment is failing on multiple fronts. It is not routinely providing the support that disabled people need, there is widespread distrust with the system, and with … Continued

Income gaps between different regions across Britain have remained resolutely high over the past thirty years, including during the pandemic upheaval and ‘levelling-up’ agenda, highlighting the scale of the challenge facing PM-in-waiting Andy Burnham as he seeks to tackle geographic inequality, Resolution Foundation Chief Executive Ruth Curtice will say at an event later today (Wednesday). … Continued

Welcoming the Government’s announcement that it has tasked councils with better recording the whereabouts of teenagers who are not in employment, education or training (NEET), Julia Diniz, Economist at the Resolution Foundation, said: “The roots of Britain’s NEETs crisis – where over a million young people today are not in employment, education or training – … Continued

Firms have a critical role to play in hiring Britain out of its NEETs crisis – but targeted subsidies, rather than expensive tax breaks, are the most cost-effective way of supporting employers to get young people into work, according to new Resolution Foundation analysis, published today (Monday). Take a chance on me warns that Britain’s … Continued

Young people born from the mid-1990s onwards are enjoying higher living standards than their millennial predecessors so far in their careers, in part by becoming the stay-at-home generation, according to new Resolution Foundation research published today (Thursday). They’re coming home – supported by the Economic and Social Research Council (ESRC) funded Centre for Population Change, … Continued