Real wages in the UK will not return to their 2008 level until 2026 despite an easing of inflation, the Resolution Foundation, an independent think tank, reported this week in its analysis of the new budget.

According to the report, the country is on track for a “disastrous decade” of stagnant incomes and high taxes, with cuts to public services.

The publication highlighted that real wages fell at an annual rate of 3.9% in January, noting that the bigger picture for wages is “one of long-term pay stagnation.” 

The decrease in household disposable incomes this year and next are the worst in a century, the think tank stressed.

“Britain’s economy remains stuck in a deep funk – with people supported into work but getting poorer, and paying more tax but seeing public services cut,” it wrote.

The UK is forecast to have gone through “the biggest energy and inflation shock since the 1970s, while avoiding a recession, with unemployment peaking at just 4.4%,” Resolution Foundation added.

According to the study, taxes as a share of GDP are expected to hit 37.7% by the end of the forecast period, representing a 70-year-high and a 4.7% increase since 2019-2020.

The freeze on income tax thresholds since 2022-23 means that typical households will be worse off by £1,110 ($1,337) by 2027-28 when the freeze ends, it noted.

Torsten Bell, chief executive of the Resolution Foundation, stated that “Jeremy Hunt’s first budget was a much bigger affair than many expected, combining improvements to the dire economic and fiscal outlook with a significant policy package aimed at boosting longer-term growth in general, and the size of the workforce in particular.

“But stepping back, the UK’s underlying challenges remain largely unchanged. We are investing too little and growing too slowly. Our citizens’ living standards are stagnant. We ask them to pay higher taxes, while cutting public services,” he concluded.

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Dave C

 Private firms are making increased profits as the government pays millions of pounds a day to put up asylum seekers in the UK.

 Across the U.S., hundreds of thousands of nursing home residents are locked in a wretched bind: Driven into poverty, forced to hand over all income and left to live on a stipend as low as $30 a month. In a long-term care system that subjects some of society’s frailest to daily indignities, Medicaid’s personal needs allowance, as the stipend is called, is among the most ubiquitous, yet least known.

Nearly two-thirds of American nursing home residents have their care paid for by Medicaid and, in exchange, all Social Security, pension and other income they would receive is instead rerouted to go toward their bill. The personal needs allowance is meant to pay for anything not provided by the home, from a phone to clothes and shoes to a birthday present for a grandchild.  Congress hasn’t raised the allowance in decades. Medicaid was created in 1965 as part of the Great Society programs of Lyndon B. Johnson. A 1972 amendment established the personal needs allowance, set at a minimum of $25 monthly. Unlike other benefits like Social Security, cost-of-living increases were not built into personal needs allowance rules. Had it been linked to inflation, it would be about $180 today. But Congress has raised the minimum rate only once, to $30, in 1987. It has remained there ever since.

When Marla Carter visits her mother-in-law at a nursing home in Owensboro, Kentucky, the scene feels more 19th-century poorhouse than modern-day America. With just a $40 allowance, residents are dressed in ill-fitting hand-me-downs or hospital gowns that drape open. Some have no socks or shoes. Basic supplies run low. Many don’t even have a pen to write with.

“That’s what was so surprising to us,” Carter says, “the poverty.”

In nursing homes, impoverished live final days on pennies | AP News

 Spaniards are facing surging prices for tomatoes and pork amid burgeoning demand for the products from abroad and geopolitical tensions, the Financial Times reported this week, citing the billionaire owner of Spanish supermarket chain Mercadona.

According to the businessman, who is ranked as Spain’s fourth-richest person, the Russia-Ukraine conflict has heavily weighed on tomato prices as it resulted in sharp surge in prices for natural gas, forcing farmers to shut down production of vegetables in greenhouses in Northern Europe due to high heating costs.

As a result, buyers flocked to Spain’s solar-powered growers, pushing up prices from €1.39 per kilogram in January 2021 to €2.05 today.

“The cost has gone up by a whopping 66 cents. We’ve raised prices by 50%,” Roig said, as quoted by the newspaper.

“So we had two options: either buy tomatoes or leave customers without tomatoes. And we believed it was more important to have tomatoes at €2.05 than to not have tomatoes.”

According to Roig, the price of pork, vital for making Iberian ham, has skyrocketed due to soaring demand from China, for which Spain is a major supplier.

“There are one billion Chinese people,” the businessman said. “How much did they ask for?     don’t know. What I do know is that pork cost €1.05 [per kilogram in January 2021] and now it costs €1.96.”

Earlier this week, the country’s national institute of statistics (INE) reported that the Consumer Price Index (CPI) for food stood at 16.6% in February, marking the highest level since 1994. This is despite the IVA (Spain’s sales tax) reductions adopted during the previous month.

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Dave C.

 The United States remains one of the most dangerous wealthy nations for a woman to give birth. Compared to other countries, the maternal mortality rate was twice as high in the US than in the UK, Germany and France; and three times higher than in Spain, Italy, Japan and several other countries,

 There are now more food banks across the UK than there are McDonald’s outlets.

 While demand has soared, donations have plummeted – in some cases by up to 70%. Protein-rich foods donations in particular have become a scarcity.

“It’s crazy and indefensible,” says the MP Charles Walker. “Venison is a wonderful, sustainable resource but is seen as too posh to eat, ergo – very few people eat it and it ends up being made into dog food. It’s a contradiction of mind-bending proportions.”

Thanks to a two-year pause in culling during Covid, the deer population is at its highest level for 1,000 years: at about 2 million animals – 50 years ago, the population was at 450,000. These herds are growing exponentially: at the current rate, there will be almost 2.4 million deer in the UK by the end of the year.  At least 750,000 animals need to be culled this year just to stop this enormous population increasing further. Thanks to post-Brexit complications in exporting the meat, however, and the lack of a UK market for venison, only 350,000 animals are currently being culled each year.

At the same time, a growing number of families hit by the cost of living crisis need healthy food, particularly from protein-rich food groups including meat.

Forestry England, Farm Wilder and the Country Food Trust have created a pipeline funnelling protein-rich, low-fat, low-cholesterol venison meals to food banks, schools, hospitals, the armed forces and prisons across the country. By the end of the year, it is hoped 1 million visitors to food banks will have dined on wild venison ragu. And that’s just the pilot: the aim is to roll the scheme out nationally.

Forestry England will supply 5,000kg of wild venison from forests in Devon and Cornwall to Farm Wilder this year. It will process the venison into ragu and the Country Food Trust will distribute it. 

“These meals have literally been a lifesaver,” said Gill Bates, the manager of the Bexley food bank in Erith. “Demand from families is up by 150% but we often have no protein in stock at all. This is a problem because from a health point of view, proteins are the building blocks of life, far more so than the white carbohydrates we get donated in far greater bulk.”

‘Deer are destroying habitats’: push to get venison on to UK dinner plates | Food banks | The Guardian

 Research from the Trades Union Congress based on ONS data covering the third quarter of 2022 found that 16.7% of London workers did unpaid overtime work in 2022, more than any other region in the UK. 

£7.3 billion worth of unpaid overtime work, more than the next two regions – the South East and the East of England – combined.

These employees performing an average of 8.4 extra hours per week, also the highest in the UK, 

The average loss per employee was £10,796.

Unpaid overtime was more common in the public sector, where 14.8% of employees reported working extra hours without pay, compared to 11.7% in the private sector.

“Nobody minds putting in longer hours for time to time,” TUC Regional Secretary Sam Gurney said. “But some workers in London put in thousands of pounds worth of unpaid overtime last year. Unpaid hours should never be a regular habit – that’s just exploitation. With staff shortages in many industries, work intensity and pressure to work longer days is a big problem.”

Overtime pay: Londoners did £7.3 billion worth of unpaid work last year | Evening Standard

RS

 The World Health Organization (WHO) is warning of a “silent pandemic” of antimicrobial resistance. Five million deaths are associated every year due to antimicrobial resistance, according to the release.  2.8 million antimicrobial-resistant infections occur in the U.S. each year, and more than 35,000 people die as a result,

“Antibiotic resistance is one of the major concerns in modern medicine today,” Dr. Aaron Glatt, chief of infectious diseases at Mount Sinai South Nassau Hospital on Long Island, New York, explained. “There is a dearth of safe, effective and inexpensive agents to use to treat many of these significant infections. It is critical that new and innovative products be investigated.” Glatt added.

Pharmaceutical companies must invest in the research and development phase to find an antimicrobial agent that will combat drug resistant pathogens, experts say. Yet these drugs are as likely to fail during this process as drugs for other diseases that may yield a much better return on the investment, such as cancer and heart drugs. 

It’s often simply cheaper to bring ‘me-too’ drugs to the market than try and completely redesign a new drug. Look at how many different statin drugs we have that are basically identical. How many SSRI [selective serotonin reuptake inhibitor] depression drugs are available with minimal differences.

You only ever need an antibiotic ideally for a brief period of time, yet a cholesterol drug or an HIV antiviral is forever.

‘Silent pandemic’ warning from WHO: Bacteria killing too many people due to antimicrobial resistance | Fox News

 The world is facing an imminent water crisis, with demand expected to outstrip the supply of fresh water by 40% by the end of this decade, experts have said, according to a landmark report on the economics of water. The report marks the first time the global water system has been scrutinised comprehensively and its value to countries – and the risks to their prosperity if water is neglected.

Johan Rockstrom, the director of the Potsdam Institute for Climate Impact Research and a lead author of the report, told the Guardian the world’s current neglect of water resources was leading to disaster. 

“The scientific evidence is that we have a water crisis. We are misusing water, polluting water, and changing the whole global hydrological cycle, through what we are doing to the climate. It’s a triple crisis.” Water is fundamental to the climate crisis and the global food crisis. “There will be no agricultural revolution unless we fix water,” said Rockstrom.

Mariana Mazzucato, an economist and professor at University College London, also a lead author, added:

 “We need a much more proactive, and ambitious, common good approach. We have to put justice and equity at the centre of this, it’s not just a technological or finance problem.”

Many governments still do not realise how interdependent they are when it comes to water, according to Rockstrom. Most countries depend for about half of their water supply on the evaporation of water from neighbouring countries – known as “green” water because it is held in soils and delivered from transpiration in forests and other ecosystems, when plants take up water from the soil and release vapour into the air from their leaves.

Many of the ways in which water is used are inefficient and in need of change, with Rockstrom pointing to developed countries’ sewage systems.

 “It’s quite remarkable that we use safe, fresh water to carry excreta, urine, nitrogen, phosphorus – and then need to have inefficient wastewater treatment plants that leak 30% of all the nutrients into downstream aquatic ecosystems and destroy them and cause dead zones. We’re really cheating ourselves…”

 Global fresh water demand will outstrip supply by 40% by 2030, say experts | Water | The Guardian

 The Resolution Foundation has said typical household disposable incomes were on course to be lower by the end of the forecast period in 2027-28 than they were before the pandemic, when inflation was taken into account.

Chancellor, Jeremy Hunt, was unable to change the course of declining living standards, the foundation said.

“Britain’s economy remains stuck in a deep funk – with people supported into work but getting poorer, and paying more tax but seeing public services cut,” the report said.

Workers also face paying more to the Treasury because personal tax thresholds have been frozen instead of rising with inflation, meaning wage growth pushes more people into higher rate bands – a phenomenon known as “fiscal drag”.

Intense cost pressure on public services from stagnant budget allocations and rising inflation were “largely ignored” in the budget, the thinktank said, adding that Whitehall departments outside the protected areas of health, schools and defence faced 10% cuts in real terms to day-to-day spending per head by 2027-28. This loss of spending power across most government departments will rise to 14% “if the newly announced aspiration for defence spending to rise to 2.5% of GDP is met over the next parliament”.

Budget: UK on track for ‘disastrous decade’ of income stagnation | Budget 2023 | The Guardian