Household income falling at fastest rate since 1976 as UK savings rates crash

Economic growth following the Brexit vote has come to an abrupt halt as consumers raid piggy banks to battle rising inflation and stalled wages

The consumer-driven momentum that has kept the British economy afloat since the Brexit vote is declining rapidly, with new data showing households in the grip of the most protracted squeeze on living standards since the economic crisis of the mid-1970s.

Against a backdrop of rising prices and stagnant wage growth, incomes adjusted for inflation have now fallen for three successive quarters, the first time this has occurred since the International Monetary Fund had to bail Britain out in 1976.

Related: BoE economist wants to hear about hardship in the UK - first stop Wales