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Average earnings just £16 a week higher than 2010

WRLO Accountants — Fri, 05 Jul 2024 16:46:14 +0000

Real average earnings are just £16 a week higher than they were 14 years ago, according to research conducted by the Resolution Foundation. The think tank said that the UK’s labour market backdrop to the General Election is a prolonged pay squeeze that has left real average wages today just £16 a week higher than in 2010. It stated that this has been caused by three shocks to pay packets in little over a decade, including the financial crisis, the Brexit referendum and the cost-of-living crisis. According to the Resolution Foundation, in the 14 years prior to the 2010 election, average real wages grew by £145 a week in total. Hannah Slaughter, Senior Economist at the Resolution Foundation, said: ‘Britain’s prolonged pay depression has left average earnings just £16 a week higher than they were back in 2010, despite the welcome return of rising real wages in recent months. ‘Worryingly, Britain’s decade-long jobs boom during the 2010s has also gone bust, with the UK one of only a handful of countries where employment has yet to return to pre-pandemic levels.’ Internet link: Resolution Foundation website

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UK set for biggest tax rise in at least 50 years

WRLO Accountants — Mon, 06 Nov 2023 20:43:53 +0000

The UK is on course to see its biggest tax rise in at least 50 years as a result of the freeze on personal thresholds and soaring inflation, according to analysis from the Resolution Foundation. The think-tank said taxpayers are set to pay over £40 billion a year by 2028, up from a forecast of £30 billion at the time of the March Budget. A four-year freeze in personal tax thresholds – the Personal Tax Allowance and Higher Rate Thresholds for Income Tax – was first announced in Budget 2021. At the time, it was forecast to raise £8 billion a year once fully rolled out in 2025/26. In Autumn Statement 2022, this was supplemented by a two-year extension of the policy through to 2027/28, and the addition of an employer National Insurance threshold freeze, which raised £6 billion. The more recent inflation shock has significantly increased the size of this tax rise. Adam Corlett, Principal Economist at the Resolution Foundation, said: ‘Abandoning the usual uprating of tax thresholds is a tried and tested way for governments of all stripes to raise revenue in a stealthy way. ‘But it is the far bigger than anticipated scale of the government’s £40 […]

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