Brits face biggest squeeze to their wallets since post-WW1 recession

April 11th, 2011 - 2:57 pm ICT by ANI  

London, Apr 11 (ANI): Britons are facing the worst financial crisis since the post-World War One recession of 1919-21.

The average family is 910 pounds worse off than two years ago because of soaring inflation and widespread curbs on pay rises.

According to the Centre for Economics and Business Research, disposable incomes are set to fall by another 2 percent in 2011.

Economists say public spending cuts are only a “minor element” with bigger worries being the rocketing cost of oil, food and trading commodities like cotton and metals.

More bad news is feared this week with another rise in unemployment expected, and inflation at still more than double the Bank of England’s 2 percent target.

“Families know cuts which go too deep are hurting, but the evidence is now growing that they’re not working,” the Daily Star quoted Angela Eagle, shadow Chief Secretary to the Treasury, as saying. (ANI)

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