Sky's business correspondent Gurpreet Narwan says the long-awaited analysis of the public finances by the OBR suggests it will be 2028 before incomes recover to their 2021-22 level.
Addressing MPs in the House of Commons, Jeremy Hunt promised that his autumn statement would lead to"lower inflation, lower mortgage rates, a shallower downturn and lower unemployment".In a fresh set of forecasts published on Thursday, the Office for Budget Responsibility revealed that household disposable incomes are heading for their biggest fall on record.When adjusted for inflation, which is expected to peak at 11% this quarter, incomes will fall by 7.
The figures underscore the depth of the inflationary challenge facing policymakers, who have already spent more than £100bn trying to keep energy bills down. The government's energy price guarantee, which caps a typical household's annualised energy bill at £2,500 this winter and £3,000 next winter, has helped to protect disposable incomes but it doesn't change the overall picture of dramatic decline. It will be 2028 before incomes recover to their 2021-22 level.
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