Paul Johnson, the Director of the Institute for Fiscal Studies, says it is going to be a “grim five years for household incomes” based on forecasts from the Office for Budget Responsibility. Report by Jonesia. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Category
🗞
NewsTranscript
00:00Well, the good news is that the Office of Budget Responsibility
00:03forecast that household incomes would rise a bit faster
00:06over this Parliament than they did over the last Parliament.
00:09The bad news is that that would still
00:11be the second worst five-year Parliament in modern history.
00:16And indeed, the OBR downgraded their view of growth
00:20in incomes over this Parliament, partly
00:23because of the increases in tax.
00:26I'm afraid this is going to be, on their forecasts,
00:29a pretty grim five years for household incomes.
00:33What we've seen is what we at the IFS and many others
00:37said would happen.
00:38There would have to be an increase in spending.
00:40It would have to be financed by increases in tax.
00:43Of course, both the Labour Party and the opposition
00:46went out of their way to say that's not
00:48what their intentions were through the election campaign.
00:52They've changed their tune really pretty dramatically
00:55since.