Millions to be worse off next year due to inflation and tax hikes, IFS says

Millions of people look set to be worse off next year due to the spiralling cost of living, weak economic growth and tax increases, according to a leading economic think tank.

The Institute for Fiscal Studies claimed that the continuing squeeze on wages meant the average worker could be left almost £13,000 a year worse off after years of stagnation since the financial crash.

The Treasury said yesterday’s budget had been designed to boost the incomes of the lowest paid.