UK faces longest fall in living standards since records began, says thinktank

Resolution Foundation says cut in growth announced in budget means household disposable incomes will fall until 2020

The UK is on course for the longest fall in living standards since records began in the 1950s, as analysis shows Philip Hammond's budget will drive up inequality.

The Resolution Foundation said the stark downgrade to economic growth revealed by the chancellor on Wednesday means household disposable incomes were now set to fall until 2020. It also found the poorest third are set for an average loss of 715 a year over the coming five years, while the richest third stand to gain 185 on average.