The UK’s pivot towards closer trade ties with the Indo-Pacific region, and particularly its trade agreement with India, could deliver big economic benefits eventually comparable in scale to the now defunct US trade deal, but it also carries far more uncertainty and risk, according to new Resolution Foundation research published today (Wednesday). A presage to … Continued

Commenting on the latest ONS public sector finances data for December 2021, James Smith, Research Director at the Resolution Foundation, said: “As we await further evidence of the impact of Omicron on economic activity, today’s figures suggest that the latest wave has not had a huge effect on the public finances so far, with borrowing in December broadly in … Continued

Inflation reached its highest level in 30 years, and Britain’s cost of living squeeze is likely to continue to tighten until next Spring when energy bills jump, the Resolution Foundation said today (Wednesday) in response to the latest ONS prices data. Inflation hit 4.8 per cent (CPIH) / 5.4 per cent (CPI) in December, with … Continued

The evolution of Britain’s welfare state since its post-war creation leaves it providing a weak safety net that sees far too many people fall into poverty, and little insurance for those whose jobs are threatened by economic change, according to major new research published today (Wednesday) by the Resolution Foundation. Social Insecurity – the latest … Continued

Real wages officially began to fall in November, and the current period of shrinking pay packets is likely to get worse before it starts to ease in the second half of 2022, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics. Real regular average weekly earnings wages fell by … Continued

The number of households suffering from ‘fuel stress’ – spending at least 10 per cent of their family budgets on energy bills – is set to treble overnight to 6.3 million households when the new energy price cap comes into effect on April 1, according to new research published today (Monday) by the Resolution Foundation. … Continued

Decades of declining change in the UK labour market has reduced the risk of damaging job losses, but also limited opportunities for pay-enhancing job moves, according to new research published today (Thursday) by the Resolution Foundation for The Economy 2030 Inquiry. Changing jobs? – co-written by the Resolution Foundation and the Centre for Economic Performance … Continued

2022 is set to the ‘year of the squeeze’, with real wages set to be no higher next Christmas than today, and families face a typical income hit of around £1,200 a year from April as a result of tax rises and soaring energy bills, according to new Resolution Foundation research published today (Wednesday). The Foundation’s latest … Continued

The Covid economic crisis risks worsening social mobility in Britain over the coming decade, as young people from less affluent backgrounds were more than twice as likely to have left work during the first 12 months of the pandemic than those from richer households, and face wage scarring as a result, according to new research … Continued

4.75 million families living in social housing in England are facing rent rises of up to 4.1 per cent next April – equivalent to an average £202 extra per year – the biggest nominal increase in a decade, according to Resolution Foundation research published today (Wednesday). The latest Housing Outlook examines how the rise in … Continued

The Chancellor’s £1 billion support package announced today (Tuesday) rightly provides targeted support to firms affected by the economic hit from Omicron, but does nothing to help the many thousands of workers who will also be affected, and suffer a huge income hit over Christmas and into next year as a result, the Resolution Foundation … Continued

Jack Leslie, Senior Economist at the Resolution Foundation, said: “While the timing of the Bank’s decision to raise interest rates is odd given the economic damage currently being caused by Omicron, the fact is that it is unlikely to make much difference to either inflation or household budgets. The real action is with the Treasury … Continued

A sharp rise in inflation last month – with CPIH inflation rising from 3.8 To 4.6 per cent, and CPI inflation rising from 4.2 to 5.1 per cent – tightened the squeeze on living standards across Britain, amid widespread uncertainty as to how large and long-lasting it will be, the Resolution Foundation said today in … Continued

The UK has entered the tough new Omicron phase of the Covid crisis with a healthy rather than overheating labour market, but with shrinking real pay packets, the Resolution Foundation said today (Thursday) in response to the latest ONS labour market statistics. The labour market experienced a brief, and healthy, period of normality during October … Continued

Inflation-busting house price growth over the past 20 years has delivered an unearned, unequal and untaxed £3 trillion capital gains windfall in Britain, with those aged 60 and over the biggest winners from this one-off ‘property lottery’, according to new Resolution Foundation research published today (Thursday). The report Home county – in partnership with abrdn … Continued

The pandemic has not led to mass unemployment as many feared, but has instead driven wider shifts that have increased employment among younger women, but pushed many men and older workers out of the labour market altogether, according to new research published today (Tuesday). Begin again? – the eighth report for The Economy 2030 Inquiry, … Continued

The rate of inflation has increased at its fastest rate over the past year since at least 1989, a shift that means real wages are already falling and are likely to continue to do so for the next six months, the Resolution Foundation said today (Wednesday) in response to the ONS inflation data. CPI inflation … Continued

The end of the furlough scheme in October has not sparked fresh a labour market shock as many had feared, with payrolled employment continuing to rise, vacancy levels hitting a fresh high, and seven-in-eight recently furloughed workers returning to work, the Resolution Foundation said in response to the latest ONS data today (Tuesday). The Foundation … Continued

A focus on the UK’s least productive firms risks distracting policy makers from the economy-wide under-performance on investment and management that is holding British businesses back as we enter a decade of major economic change, according to a new report for The Economy 2030 Inquiry published today (Monday). Business Time – co-written by the Resolution … Continued

The end of the Coronavirus Job Retention Scheme (JRS) is likely to have led to only a small rise in the number of people not working – with around 136,000 workers moving from furlough to either unemployment or inactivity – but furloughed staff are six times more likely to have lost their jobs than other … Continued

Responding to the latest ONS GDP figures today (Thursday), which show that the economy grew by 0.6 per cent in September, and by 1.3 per cent in the third quarter of 2021, leaving the UK with the largest shortfall in GDP relative to its pre-pandemic peak among G7 countries, James Smith, Research Director at the Resolution … Continued

Publicly naming businesses using exploitative practices or underpaying workers encourages other firms to comply with labour market rules – but tougher financial penalties and better detection of those breaking the law are still essential, according to new research published today (Tuesday) by the Resolution Foundation. The report No shame, no gain? – part of the … Continued

The Chancellor set the stage for a new high tax economy – rather than the high wage economy pledged by the Prime Minister, or the low tax one favoured by many Conservative MPs – the Resolution Foundation said today (Thursday) in its overnight analysis of the Budget and Spending Review 2021. The Boris Budget notes … Continued