Total pay growth fell for the fourth consecutive month, reflecting the fact that total private sector pay has been broadly flat since August, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market data. Headline annual pay growth in the three months to November dropped to 6.6 per cent, largely reflecting … Continued

Commenting on the latest ONS GDP data, James Smith, Research Director at the Resolution Foundation, said: “The economy grew more strongly than expected between October and November, driven by a recovery in our services sector including strong black Friday retail sales and a high performing ICT sector, making it less likely Britain will fall into … Continued

Changes to the UK mortgage market and improving household balance sheets, including ‘forced saving’ during the pandemic, have helped to deliver an unprecedented £16 billion household income boost from higher interest rates, according to new research published today (Friday) by the Resolution Foundation. The latest Macroeconomic Policy Outlook examines the impact of the Bank of … Continued

A year of poor economic data ended on a high as CPI inflation fell by more than markets expected to 3.9 per cent in November – its lowest level since September 2021. But while inflation should continue to fall next year, there are likely to be bumps in the road, reminding us all that cost-of-living … Continued

Young low-paid workers were big winners in the recent Autumn Statement as reductions in the age threshold for the National Living Wage (NLW) and boosts to the National Minimum Wage’s youth rates will mean pay rises of up to 21 per cent (for 16-17 year olds) next April. But despite this progress, low pay remains … Continued

Commenting on the latest ONS GDP data, in which the economy showed no growth in the three months to October, and contracted by 0.3 per cent in October, driven by a fall in services (including services exports) and ICT in particular, James Smith, Research Director at the Resolution Foundation, said: “The poor performance on the … Continued

Pay growth has declined markedly in recent months – tracking the sharp recent fall in inflation and a looser labour market – the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market data. The Foundation notes that while headline annual pay growth in the three months to October remained high – … Continued

Strong pay growth in Britain may cool next year, driven more by workers’ experiences of lower inflation than a looser labour market, according to new Resolution Foundation research published today (Tuesday). The latest Labour Market Outlook examines a key question for policy makers and workers coping with the cost of living crisis – what will … Continued

The Chancellor’s announcement in the recent Autumn Statement that the Local Housing Allowance (LHA) will be re-pegged to local rents in April 2024 will bring welcome relief to many of Britain’s poorest households, with those in cities set to see some of the largest financial gains, according to new Resolution Foundation research published today (Saturday). … Continued

Britain’s toxic combination of low growth and high inequality has left it falling behind its peers. But a new economic strategy that builds on Britain’s strengths as a services superpower, prioritises public and private investment, expands its great cities, and ensures good work in every town could help the country catch-up and close its £8,300 … Continued

The Chancellor yesterday delivered an Autumn Statement with a few big ticket pre-election giveaways, and welcome policy measures to address problems such as our tax system’s bias against working-age earnings, our benefit system’s failure to keep pace with fast-rising rents, and firms’ weak incentives to invest. But the Autumn Statement failed to end a wider … Continued

The Chancellor has spent almost all of the near £90 billion of fiscal good news handed to him by the Office for Budget Responsibility (OBR), mainly on tax cuts well-targeted at investment and earnings. But these were funded by handing whoever wins the next election implausible plans to cut public spending, the Resolution Foundation said … Continued

CPI inflation fell by more than expected to 4.6 per cent in October – its lowest level since October 2021, and the largest annual fall in more than 40 years. But with overall prices rising by 16 per cent over this two-year period, and energy costs rising by 49 per cent, families are still feeling … Continued

Private sector pay growth has almost halved in recent months, suggesting that higher interest rates are bringing about a turn in the labour market, the Resolution Foundation said today (Tuesday) in response to the latest data. Headline nominal regular average weekly earnings grew by 7.7 per cent on the year – down on the previous … Continued

The UK economy was flat in the third quarter of 2023, highlighting the scale of the challenge facing the country in delivering sustained economic growth over the coming decade, the Resolution Foundation said in response to the latest ONS data. The economy unexpectedly expanded by 0.2 per cent on the month in September, avoiding a … Continued

Stickier-than-expected inflation is leading to higher tax receipts and lower borrowing that will increase the Chancellor’s fiscal headroom to around £13 billion in his Autumn Statement. But this extra headroom is a ‘fiscal illusion’ founded on pretending the higher inflation that boosts tax revenues won’t push up spending too, according to new Resolution Foundation research … Continued

Stronger than expected wage growth means the National Living Wage (NLW) could rise to around £11.46 an hour next April – well above the £11 suggested by the Chancellor earlier this month, according to a new Resolution Foundation briefing published today (Saturday). The briefing – which uses the Low Pay Commission’s methodology to calculate what … Continued

Britain’s earnings distribution is bulging in the middle, as the share of both low- and high-paid employees continues to decline, the Resolution Foundation said today (Wednesday) in response to the ONS Annual Survey of Hours and Earnings (ASHE). The latest ASHE data – the most authoritative statistics on what is happening to pay packets across … Continued

Delayed labour market data showed that the labour market continued to cool over the summer, with unemployment up and employment down. However, the poor quality of this data will hamper key decisions, including the Bank of England’s on interest rates and the Government’s on labour market inactivity, the Resolution Foundation said today (Tuesday). The latest … Continued

The last set of public sector finance data to be included in the Office for Budget Responsibility’s Autumn Statement forecasts shows that borrowing is already close to £20 billion below the OBR’s previous forecast this year, but the impact of higher interest rates will worsen the medium-term fiscal outlook, the Resolution Foundation said today (Friday) … Continued

Britain’s macroeconomic policy framework is largely unchanged since the 1990s, and now needs an overhaul to tackle the risk of an unsustainable ratcheting up of debt that will hamper its ability to respond to economic shocks or fund public services, the Resolution Foundation said today (Thursday). Built to last – the 46th report from The … Continued

Progress on getting inflation back down to target stalled in September as CPI inflation remained at 6.7 per cent, with a welcome monthly fall in food costs offset by rising petrol prices, the Resolution Foundation said today (Wednesday). CPI inflation remained unchanged in September, defying market expectations of a slight fall. However, a big fall … Continued

National Infrastructure Assessment rightly identifies the need for higher, more stable, and better prioritised public investment across Britain Commenting on the National Infrastructure Commission’s second national infrastructure assessment, published today (Wednesday), Torsten Bell, Chief Executive of the Resolution Foundation, said: “Britain needs to invest more to underpin its growth and net zero transition. This authoritative … Continued

Continuing fall in employment and vacancy levels mean that a big question going into the autumn is how long Britain’s mini pay recovery will last, the Resolution Foundation said today (Tuesday). The latest pay, vacancies and employee jobs data from the ONS – crucial data on employment, unemployment and inactivity will be published next Tuesday … Continued