The ‘squeezed middle’ faces added pressure

The Chancellor's autumn statement has piled further pressure on the "squeezed middle" according to analysis from the Resolution Foundation that found tax rises would deliver a 3.7 per cent income hit to typical households.

The think tank said the uprating of benefits in line with inflation would make a "huge difference to those on low-to-middle incomes", but the focus on "stealthy" tax threshold freezes to raise revenue would extend far beyond high earners.

It also warned that workers are living through a twodecade wage stagnation costing £15,000 a year.

"A typical household faces a permanent 3.7 per cent incomehitfromthesemeasures – the same as the top fifth of households – and bigger than the 3 per cent income hit that the very top 20th of households will face," the foundation said.

The Resolution Foundation also found that the budgetwouldreversemuch of the Government's levelling up agenda.