The British economy is failing to deliver stronger growth in workers’ pay, as the mounting risk of a no-deal Brexit turns up the pressure on household finances, according to a Guardian analysis of economic developments over the past month.
Pay growth in Britain has dropped to its weakest in almost a year despite the unemployment rate hitting a 43-year low. At the same time, recent weakness in the pound amid the growing chance of a no-deal Brexit is poised to push up the rate of inflation, triggering a renewed squeeze on living standards.
Despite some pockets of strength for the economy, there are growing signs of weakness after the Bank of England raised interest rates above the emergency level set since the financial crisis. Ushering in a new era of higher borrowing costs for consumers and businesses, the move comes as ministers prepare the public for Britain crashing-out of the EU without a deal with Brussels.
