Healey’s Budget spoiled by ‘grim’ living standards squeeze

Britain is trapped in a “grim” decade of stagnant living standards, the budget watchdog has said, after John Healey kicked some of the government’s toughest spending decisions on defence and welfare into next year. The government’s fiscal watchdog said that families are about to see household income drop as a result of the country’s rising tax burden and high levels of inflation caused by the Iran war. The Office for Budget Responsibility’s forecasts show that real household disposable income will shrink next year. The body also said family budgets will be just two per cent higher in 2030 than before the pandemic. OBR economist Professor David Miles said changes to living standards painted a “pretty grim picture”, adding that the minimal change in income over the decade was “unusual” by historical standards. The daunting reflection of Britain’s economic woes was presented alongside Healey’s Budget, which raised taxes on banks, savers and landlords while increasing govern