Average UK household £8,800 a year worse off than those in France or Germany

Thinktank blames inequality and poor productivity as CBI calls for investment policies to fuel growth

The UK's failure to get serious about inequality and weak growth over the past 15 years has left the average British household 8,800 poorer than its equivalent in five comparable countries, research has found.

A toxic combination" of poor productivity and a failure to narrow the divide between rich and poor had resulted in a widening prosperity gap with France, Germany, Australia, Canada and the Netherlands, the report from the Resolution Foundation said.