Analysis and action on living standards
This report is the fourth in our series of ‘audits’ of households’ wealth, offering the most comprehensive assessment of wealth inequality in Britain. It comes against a backdrop of an unprecedented mix of economic shocks and policy interventions during the Covid-19 pandemic and its aftermath which have had profound effects on family finances.
The upcoming Budget is likely to come with a significant downgrade to the fiscal outlook, with pressures from recent policy reversals, rising debt-interest costs, and a gloomier economic outlook. It is plausible that annual borrowing could be £20-£40 billion, or more, above the Office for Budget Responsibility’s March forecast. This is undoubtedly a challenging outlook for the Government, but it’s one that it must respond to robustly, so this report considers how tax policy can be used to address the expected shortfall. It sets out a range of options that could together raise over £30 billion, while minimising the economic impact of higher taxes on the economy and living standards.
The Resolution Foundation is an independent think-tank dedicated to lifting living standards in the UK. We focus particularly on households with low and middle incomes; those on low pay or in precarious work; and those vulnerable to financial shocks.
UK Government borrowing costs have once again been in the headlines. Recent moves have, however, been overblown: since benchmark 10-year yields peaked at post-financial-crisis highs of 4.9 per cent in January, they have fallen back. Iin this edition of the MPO we take a longer view, unpacking why the rise in UK yields since the pandemic has been larger here than elsewhere, and discussing how policy should respond.
This is our third Housing Outlook of 2025. This quarter, we show that delivering 1.5 million new homes by the end of Parliament would be a real step-change in housebuilding in England, but not game-changing when it comes to rebalancing housing supply and demand.
The Resolution Foundation calculates the real Living Wage – a voluntary hourly pay rate that is based on what families need to get by. The current national rate is:
Explore our interactive housing indicators or read about our alternative estimate of UK employment.
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