IFS says household income predictions are ‘actually awful’

The Institute for Fiscal Studies (IFS) have issued a stark warning regarding the Office for Budget responsibility’s household income growth forecasts.

IFS director Paul Johnson has told the BBC’s Politics Live programme today that “deep in the bowels” of the OBR’s document, released in reaction to today’s budget, are “very disappointing” figures, that show household income will be “pretty stagnant” at around 0.8 per cent growth per year.

He said: “This is actually awful,” pointing to: “High inflation, rising taxes, poor growth keeping living standards virtually stagnant for another half a decade.”