UK politics live: war in Ukraine will contribute to Britons facing ‘biggest fall in real-terms disposable income for 50 years’

Latest updates: conflict forecasted to further push up energy prices and inflation, says Resolution Foundation thinktankRussia-Ukraine war: latest updatesGood morning. In the House of Commons today MPs will debate a Labour motion about the national insurance increase, and the impact this will have on family finances. Later, in an unprecedented event, Ukraine’s president, Volodymyr Zelenskiy, will address MPs sitting in the Commons chamber by video link, from the beseiged city of Kyiv where his life is at risk. (In the past, when distinguished foreign leaders have been invited to address MPs in parliament, they have done so in person at Westminster Hall, but the Zelenskiy invite is a consequence of Covid opening up the advantages of virtual proceedings.)The Ukraine war and the cost of living crisis are generally seen as separate issues, but a report today from the Resolution Foundation thinktank argues that they are closely entwined. It says the war could contribute to Britons suffering the biggest fall in real-terms disposable income for almost 50 years. It says:The conflict in Ukraine is forecast to further push up energy prices and wider inflation (to over 8 per cent this Spring), causing typical household incomes across Britain to fall by 4 per cent in the coming financial year (2022-23), the sharpest fall since the mid-1970s, according to the Resolution Foundation’s annual Living Standards Outlook for 2022. Continue reading…

Latest updates: conflict forecasted to further push up energy prices and inflation, says Resolution Foundation thinktank

Good morning. In the House of Commons today MPs will debate a Labour motion about the national insurance increase, and the impact this will have on family finances. Later, in an unprecedented event, Ukraine’s president, Volodymyr Zelenskiy, will address MPs sitting in the Commons chamber by video link, from the beseiged city of Kyiv where his life is at risk. (In the past, when distinguished foreign leaders have been invited to address MPs in parliament, they have done so in person at Westminster Hall, but the Zelenskiy invite is a consequence of Covid opening up the advantages of virtual proceedings.)

The Ukraine war and the cost of living crisis are generally seen as separate issues, but a report today from the Resolution Foundation thinktank argues that they are closely entwined. It says the war could contribute to Britons suffering the biggest fall in real-terms disposable income for almost 50 years. It says:

The conflict in Ukraine is forecast to further push up energy prices and wider inflation (to over 8 per cent this Spring), causing typical household incomes across Britain to fall by 4 per cent in the coming financial year (2022-23), the sharpest fall since the mid-1970s, according to the Resolution Foundation’s annual Living Standards Outlook for 2022.

Continue reading…

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