Worst fall in UK living standards since records began, says OBR

Spending watchdog says Britain is in recession and unemployment will rise by 500,000

• Business live - autumn statement updates and analysis
• Autumn statement - key points at a glance

The UK has fallen into a recession which will last more than a year and push half a million people out of work, while households face the biggest fall in living standards since records began.

The government spending watchdog forecast a 7% drop in household incomes over the next two years, capping what one of its officials described as a dismal decade" for growth.