25th November 2016
Every household will lose a £1,250 a year by the 2020s because of the Brexit vote says the Institute of Fiscal Studies basing its claim on the Office for Budget Responsibility forecasts accompanying the Autumn Statement.
The IFS says this does not include the impact of any Brexit deal merely the direction determined by the referendum vote.
The economic thinktank says workers will suffer from a 3.7 per cent fall in real earnings by the start of the 2020s, compared with the pre-referendum forecast.
The OBR’s figures are for real GDP per household to be £1,250 lower in 2020-21, as a result of the vote to leave the EU.
Paul Johnson, director of the IFS says: “This has, for sure, been the worst decade for living standards certainly since the last war and probably since the 1920s.
“We have seen no increase in average incomes so far and it does not look like we are going to get much of an increase over the next four or five years either.”
The outlook for living standards and for the public finances has deteriorated pretty sharply over the last nine months.”