The Chancellor’s autumn statement has piled further pressure on the “squeezed middle” according to analysis from the Resolution Foundation that found tax rises would deliver a 3.7% income hit to typical households.
The think tank said the uprating of benefits in line with inflation would make a “huge difference to those on low-to-middle incomes”, but the focus on “stealthy” tax threshold freezes to raise revenue would extend far beyond high earners.
“A typical household faces a permanent 3.7% income hit from these measures – the same as the top fifth of households – and bigger than the 3% income hit that the very top twentieth of households will face,” the foundation said.
