Budget 2018 leads to small losses in income at all levels
ESRI analysis: Budget did not do enough to prepare for wage inflation
Tim Callan: key differences between Budget 2018 and simple indexation. Photograph: Aidan Crawley
Wages and salaries are expected to rise by about 3 per cent in 2018. A neutral budget – increasing tax credits, tax bands and welfare payments in line with expected wage growth – would translate into 3 per cent income growth for all households.