UK face biggest fall in spending power for 70 years
The UK faces its biggest fall in spending power for 70 years as the surging cost of living eats into people's wages.
The UK is facing its biggest fall in spending power since World War II, with household incomes dropping 6% this year and next, according to the UK's independent forecaster.
The surge in food and energy bills prompted inflation rates to rise to double digits, which will only halve to 2.9% by the end of this year.
Moreover, Brexit and Ukraine are exacerbating the problem.
However, Chancellor Jeremy Hunt predicts the UK will avoid recession in 2022, with a forecasted 0.2% shrinkage.
Labor leader Sir Keir Starmer criticized the government for being "out of touch," while the Institute for Fiscal Studies says the forecast is not "enormously" different from the autumn prediction.
