The Guardian reports this morning that:
Rising prices in the wake of the Brexit vote have put the tightest squeeze on household incomes for more than five years, according to official figures on Britons' economic wellbeing.
In the opening three months of 2017, real household disposable income per head dropped 2% from the previous year. It was the steepest decline since the end of 2011 and driven by increasing prices of goods and services, the Office for National Statistics (ONS) said.
This is bad news, and with Brexit uncertainty now growing it will only get worse, and potentially much more so.
The temptation is there to say 'told you so', but I will, of course, resist it.
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I wouldn’t resist it Richard, people voted to make themselves poorer and drag the rest of us down with them. While they won’t like being told, their arrogance and stupidity will leave the next generation paying for their selfish mistakes for years to come unless common sense prevails.
I do not know what has happened to the 48% who voted ‘Remain’. The opinion of half the country is simply ignored by the strangely and quietly united phalanx of Brexiteers who seem to have gathered, quite disproporionately (compared to the the UK popluation as a whole), under the curious ‘representation’ of both the Conservative and Labour Parties in Westminster. They do not represent the balanced opinion of the public; who are now much, much wiser about the nature of both Brexit, the ideology of Brexit and not least, the lack of basic competence and judgement of the leading Brexiteers. I am not sure what the Brexit politicians actually believe; if they believe in anything at all beyond factional party interest.
The demand for ‘special treatment’ for the UK should be aimed solely toward establishing a process for longer term ‘transitional arrangements’ for exiting the EU. This is the best we can reasonably expect of an EU that we have chosen to leave. At the same time Remain supporters (all 48% – and currently, almost certainly more than 48%, and rising), should be loudly DEMANDING that Britain remain in both the Single Market and Customs Union. We have, quite frankly, had enough of the rank folly of Brexit, and the incompetent management that sourrounds it.
The proposition that the public, having made a very bad decision in the Referendum cannot change its mind; but must cling to the irrational impulse of a momentary well merited, but ill-targeted anger at the ‘Establishment’; now rationalised by the cynically self-serving politicians who let the public down, in order to preserve a daft notion that the a constitutional vote has some Absolute, certain and permanent hold over us, is just bad politics, and bad constitution-making. We could not constantly switch in-and-out of Europe; but not because of the search for ‘finality’ in the UK, or to preserve a comical notion of ‘certainty’; but because the EU would not indulge the indecision. The EU would however (I am quite confident) allow the UK to reconsider its position on Brexit. The EU would expect that (second) decision to be the UK’s final position, as would we all. This is how it should work; the Brexiteers do not like it because it doesn’t suit them, not because it doesn’t make sense.
What is your evidence that this is directly attributable to Brexit? Correlation does not equal causation. I find it interesting that the richer you were, the more likely you were to vote to remain in the EU culminating in a majority of the AB class (the richest) voting to remain.
Sure, it’s just a hunch
But it also fits every known expectation
Uncertainty induces low risk taking and that in turn reduces investment and encourages saving and so slows growth
It’s a deduction, but it’s a reasonable one
“Rising prices in the wake of the Brexit vote have put the tightest squeeze on household incomes for more than five years, according to official figures on Britons’ economic wellbeing.”
I assume that refers to the value of the pound against the dollar, in the wake of the Bank of England reducing rates from .25% to 0.5% on the 5th August in the face of a long established upward reversal in the USA.
When the remain camp had promised us a house price crash in the event of a leave vote, I found that move particularly disappointing.
Rising prices are because of a crash in the pound because we said we’d leave the EU
That happened before the rate fall as I recall
The house price crash has not happened….yet
The case for the defence ….
https://pbs.twimg.com/media/DDvqGGFW0AEmzCg?format=jpg
Oh for heaven’s sake don’t be silly
In 2010 the economy had been crashed by the banks and Labour did well in the circumstances
Seven years later what is notable is how dire things still are
“In 2010 the economy had been crashed by the banks”
That only really works as an argument if you accept the proposition that the government has no role in regulating the banks.
I said Labour was one of many at fault on that
But rather like having a 30mph limit does not mean you have to drive at 30mph banks did not need to abuse the law when it was inappropriate to do so
Your argument suggests banks had no judgement on this and that is very obviously wrong
You forget to mention real wages.
Between May 05 and May 2010 real wages (i.e. after inflation) went UP 2.5%. It would have been higher, but it included the recession of 2008/2009.
Between May 2010 and (when the Tory led Government took over) and May 2015 (similar 5 year period) real wages (i.e. after inflation) went DOWN 2.0%.
Data sources – Office Of National Statistics – ONS
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/supplementaryanalysisofaverageweeklyearnings/latest
It did increase after May 2015, but the last entry on the graph (Apr 2017) had us on the same average wage level as Jan 2006.
Thanks
As the person who does a lot of the shopping for his household, I can vouch for this post.
Whether its baked beans or the tow bar I’ve had to have fitted to our car – prices have risen.
Wages certainly have not been going in the same direction.
As the person who does the shopping in this household, I agree
Although two growing sons don’t help