UK has 'five more years of stagnant living standards at best' - IFS Director

27 October 2021, 16:01 | Updated: 27 October 2021, 16:10

By Tim Dodd

Institute for Fiscal Studies Director Paul Johnson has told LBC it's going to be "at least half a decade of stagnant living standards at best" for the UK, following the Chancellor's budget announcement today.

Mr Johnson's comments come after Chancellor has revealed his Autumn 2021 Budget to MPs, warning of "challenging months ahead," post Covid-19.

Shelagh Fogarty asked of today's Budget announcement: "Was it, without any explicit reference to austerity, the moment austerity ended?"

"Well, you could date that at, you know, a year ago, or two years ago, or three years ago," said Mr Johnson.

"I think it's certainly the moment where we can say it's definitely ended, or there's not a trace of austerity happening at the moment."

Read more: Eco activists sprayed with ink as they block roads again

Shelagh suggested that "traces" of austerity are visible across UK communities today.

Mr Johnson replied: "The effects are still there because the level of spending in some areas is still down, but it's moving in a different direction now.

"We're also still seeing the impact of the financial crisis of more than a decade ago, because our living standards have barely improved in all that time which is just dreadful in historical context.

"And if you look in the Office of Budget Responsibility document this year, they reckon they're not going to increase again, still, for the next five years - inflation being high, taxes going up, growth being low. It's going to be another at least half a decade of stagnant living standards at best."

Read more: Changes to Universal Credit 'to make work pay' would be 'attractive', MP say

More Shelagh Fogarty News

See more More Shelagh Fogarty News

Exclusive
Dr Konstancja Duff was strip-searched by the Met Police.

'Humiliated' lecturer tells LBC Met Police are 'pathetic' for 'degrading' strip-search

'I just think Boris Johnson should go': Yvette Cooper slams PM in scathing attack

'I just think Boris Johnson should go': Yvette Cooper slams PM in scathing attack

No10 officers feared 'snooping' accusations if they acted on partygate, ex-top cop says

No10 officers feared 'snooping' accusations if they acted on partygate, ex-top cop says

'They're all murderers': Caller's shocking Islamophobia experience

'They're all murderers': Caller's shocking Islamophobia experience

Headteacher tells LBC of more than £67,000 increase in her school's energy bills

Headteacher tells LBC of more than £67,000 increase in her school's energy bills

Governance 'undermined' by No10 'survival' culture, Shad. Chief Treasury Sec tells Shelagh Fogarty

Governance 'undermined' by No10 'survival' culture, Shad Chief Treasury Sec tells Shelagh Fogarty

Shelagh Fogarty's devastating takedown of Boris Johnson partygate denial

Shelagh Fogarty's devastating takedown of Boris Johnson partygate denial

'Morally inept' NDA practice in uni sex cases must be scrapped, Minister insists

'Morally inept' uni sex case NDAs must be scrapped, Minister demands

Partygate scandal: 'I will never vote Conservative again,' caller says

Partygate scandal: 'I will never vote Conservative again,' passionate caller says

Ex-Met standards boss defends lack of No10 party investigations

Ex-Met standards boss defends lack of No10 party investigation

Tory MP Sir Roger Gale tells LBC party has to replace Boris Johnson as leader

Tory MP Sir Roger Gale tells LBC Boris Johnson has to be replaced as leader

Shelagh Fogarty's passionate clash with caller defending No10 party

Shelagh Fogarty's passionate clash with caller defending Number 10 party

Pavan Sagoo passed away in the same month Downing Street held a party for staff.

Mum who lost daughter, 14, during May 2020 lockdown too devastated to say the PM's name

Cladding crisis: Caller facing bankruptcy and 'fighting it every single day on credit cards'

Cladding crisis: Caller fighting bankruptcy 'every single day on credit cards'

Colston's Girls' School ex-pupil reveals 'inappropriate' rituals to slave trader

Colston's Girls' School ex-pupil reveals 'inappropriate' rituals to slave trader

'I will now say that I forgive the person who killed my son'

'I will now say that I forgive the person who killed my son'