Living costs up by 6%

Living costs up by 6%

ADZs ‘unclear’, say Lords

Demand drops in the south

Flexible Working Preferred

Insolvencies rise in 08

59% rent cut for retailer

New home range launched

7% of NI pubs have closed

No proof for quango, say BRC

Hauliers Protest in Park Lane

New figures from Consultancy Capital Economics reveal that the share of household income now spent on essential costs such as food and bills has now risen to 31%; an increase from 25% in 2002.

Fresh predictions from the economic analysis firm suggest that gas and electricity bills are set to rise anywhere between 8% and 10%; average earnings growth, however, is expected to remain at less than 4% per annum.

Consultancy Capital Economics suggest that although the share of household income spent on average mortgage costs will drop by almost 7%, food inflation will remain at 6%, and growth in consumer spending will be limited as a result.

“The credit squeeze continues to bite on an ill-prepared Britain,” remarked Philip Hammond, Shadow Chief Secretary to the Treasury, who blamed the figures on Prime Minister Gordon Brown’s “economic incompetence”.