Thursday, March 29, 2007

Are we getting poorer?

One of the factors that governs how people vote at a general election is how the economy is doing. "It's the economy stupid" to borrow a cliche. Except that it isn't the economy as parroted in economic statistics that people notice, it is how they feel in their pockets that counts.

According to this report in the today's Telegraph disposable income is growing at its slowest since 1982, whilst the budget will make 5.3 million people worse off, mostly at the lower end of the pay spectrum. In fact disposable income dropped in the last quarter of 2006 dropped by 0.7%!

We then have to factor in things like higher fuel costs, mortgage costs and council tax .

Mind you the ever rising council tax is another issue! In Mid Sussex the district council now has to provide more services than it did in 1997, but on a £6 million budget has £100,000 more now in cash terms than it did in 1997. It makes it very hard to keep council tax at reasonable levels.

Hat tip to Witan on


Anonymous said...

Yes definitely, especially if you have kids and no pension, like me.

Benedict White said...

Ellee, yes. Pleased to see you are back as well!