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At the end of 2024, British households boosted their standard of living, according to official figures that follow up this week according to expectations for the coming years.
The Office for National Statistics (We) reported, along with unparalleled data that grows 0.1% in the economy During the fourth quarter, the right households (RHDI) per person increased by 1.7% during the period.
The measure of spending power, when the effects of inflation is included, has risen from the 0.6% over the past three months.
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The We said that most of the increase in savings was rather than being spent, explaining that the consumer’s confidence at the time and the unemployment increased.
The disposable revenue rate was reinforced by the pay agreements in the public sector following the election of the Labor’s election victory and the price of the private sector remaining above the rate of price growth in the economy.
The Office of Budget Responsibility (OBR) predicted in its updated predictions for the Spring -Statement This week, disposable income would grow an average of about 0.5% between 2025 and 2030 each year.
Chancellor Rachel Reeves said it was equivalent to an annual boost of £ 500.
The ounce figures can help partly declare an unexpected increase in retail sales in February – a month when economists expected a wide a decrease of 0.5%.
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There is widespread evidence that economic growth has taken up over the past two months, as a surprising contraction of 0.1% for January was declared, although much of it was responsible for manufacturing and construction.
However, the activity data of the private sector still points to a minor performance at a time when consumer and business confidence remains in the Doldrums.
The OBR report also included a cruel downgrade of the UK’s growth projections this year, which dropped from a 2% forecast at the time of the October to just 1%.
The chancellor blamed the events beyond her control, mostly Trump Trade War-linked market movements, because she had to announce the cutting of spending this week to recover her buffer of nearly £ 10bn to meet her fiscal rules.
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That so -called head space is completely eroded by tax receipts than weaker -than -expected tax costs since the budget.
All this happened before the most important measures from that fiscal event came into effect, with businesses warning that a jump in costs of higher tax and minimum pay requirements from April will erode investments, pay awards and lead to rising prices.
Household spending power will also come under pressure from then on, as many essential bills with the inflation rate, including water, tax tax tax – rise for those on the energy shop.
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In addition, the prospects for the cutting of Bank of England – which lowers the borrowing costs for businesses and families – is threatened, mainly due to the effects of the Trump war, but also that of high wage growth.
Liberal Democratic Treasury spokesman Daisy Cooper said about the growth -data: “These minor revisions will have the families, pensioners and small business owners cold comfort that should live with the effects of anemic growth, higher taxes and shrinking support.
“The Spring Statement of the Chancellor was a great missed opportunity to make the change that people cried after years of conservative chaos and mismanagement.”
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