17 years without a raise? Welcome to Brexit Britain

London mayor: U.K. has no game plan on Brexit

British workers could go nearly two decades without a real pay raise due to the country’s economic decline.

in which’s the key takeaway coming from two influential reports published just a day after the U.K. Treasury admitted in which a weaker outlook for growth — exacerbated by Brexit — meant Britain had fallen out of the entire world’s top a few economies.

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The Resolution Foundation, a non-partisan think tank, said in which average earnings, when adjusted for inflation, are likely to stay below the level they hit before the global financial crisis until the start of 2025. in which means 17 years without a pay hike.

The Institute for Fiscal Studies, the country’s leading independent economic research institute, gave a similarly dire warning.

Britain’s independent Office of Budget Responsibility (OBR) on Wednesday slashed its growth forecast due to This specific year coming from 2% to 1.5%. The watchdog said in which weak productivity means growth won’t pick up until 2021, as well as the idea cited Brexit as one factor.

Resolution Foundation described the OBR forecasts as “truly catastrophic,” as well as warned in which the U.K. faces its longest period of declining living standards since records began inside 1950s.

‘Unremittingly grim’

the idea based its projection of earnings in 2025 on OBR forecasts in which run to 2022, showing in which real wages will still be £1,000 below the pre-crisis peak at in which point.

“The future for family finances implied by yesterday’s forecasts will be unremittingly grim,” the group said in its report.

Paul Johnson, director of the IFS, said the forecasts suggest in which economic production per person in 2021 will be 3.5% less than what was expected in March 2016.

“in which’s a loss of £65 billion to the economy,” he noted. “We are in danger of losing not just one however getting on For two main decades of earnings growth,” he said.

The sharp downgrades underscore the tough economic conditions under which Britain will depart the European Union in March 2019.

Britain was until recently one of the strongest economies inside bloc. however the idea’s right now likely to lag many various other advanced economies, including the United States as well as some of its former partners inside EU, for years.

Related: Brexit Britain slashes growth forecast

The pain has already set in for many Brits.

The pound has dropped 12% against the dollar since the Brexit vote in June 2016, forcing them to pay higher prices for imported goods.

Wages aren’t keeping pace with inflation, which right now stands at 3%. Household debt has been growing by about 4% a year, as well as the Bank of England has squeezed consumers by hiking interest rates for once in a decade.

Business investment has slowed as well as consumer spending fell the most in four years in October, according to Visa.

The weak growth outlook makes the idea even more vital in which Britain will be able to negotiate continued trade access to EU markets after Brexit. however there’s no guarantee of a deal with the EU yet — talks are stuck on the terms of divorce.

Meanwhile, the Brexit bills are piling up.

Treasury chief Philip Hammond said Wednesday in which he had set aside £3 billion ($4 billion) to prepare for Brexit over the next two years. as well as the EU divorce bill will be likely to cost the U.K. tens of billions of pounds.

sy88pgw (London) First published November 23, 2017: 1:38 PM ET

17 years without a raise? Welcome to Brexit Britain

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