Squeeze on UK incomes to last until late 2023, says OBR

Treasury watchdog predicts inflation will keep real household incomes below 2019 levels for another two years

British households will remain worse off than before the pandemic until 2023 as rising inflation hits living standards, the Treasury's economics watchdog has warned as Rishi Sunak sought to defend his budget.

Charlie Bean, a former Bank of England deputy governor and board member of the Office for Budget Responsibility, said that growth in household incomes, after taking account of inflation, would effectively stall over the next two years.