Reuters reports that the Institute for Fiscal Studies think tank said that higher inflation and rising taxation to fund growing demand for healthcare and other public services will cause living standards in Britain to barely rise over the coming year.
The IFS said the budget statement from finance minister Rishi Sunak represented a big shift in favour of higher taxation and spending, compared to his immediate predecessors.
The Office for Budget Responsibility said Sunak's budget and tax rises announced earlier in the year would see the tax burden rise to its highest since the 1950s, and public spending increase to its highest since the 1970s.
The OBR also forecast inflation will average 4% next year, which would be its highest since 2011.