Living standards are expected to nearly flatline until the next election after £26bn in Budget tax rises , risking Sir Keir Starmer’s key pledge to help with the cost of living.

The Budget watchdog downgraded its estimate of how much spare cash people are likely to have – a key measure of living standards, and how Keir Starmer said his government should be judged by voters.

The Organisation for Budget Responsibility add that disposable income would grow until the next election at a rate that was the second slowest since the 1950s. New Feature

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The squeeze on living standards would be felt the most by top earners, but those on all incomes would suffer.

It also came amid forecasts that prices would rise faster than previously predicted

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