Middle England Set for Shock as Taxes Rise, Wages Stagnate
- Top researchers issue warning in wake of Treasury fiscal plan
- Official forecasts show UK living standards collapsing
The High Street in Guildford, south of London.
Photographer: Adrian Dennis/AFP/Getty Images
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Britain’s middle-income households will be hit hardest by an unprecedented collapse in living standards, stagnating wages and tax increases, leading researchers said after Chancellor Jeremy Hunt announced his fiscal plan on Thursday.
The typical UK household will take “a permanent 3.7% income hit” following an increase in personal taxes, the Resolution Foundation warned. The Institute for Fiscal Studies said the cost of living squeeze will be felt most by those on median earnings.