The collapse in disposable income will be about as grim as you can imagine – so why is the government embracing it?
Let’s start with a tale of two charts. Or rather, one chart.
Be warned: it’s not a pretty chart. It shows how average household disposable income changed each year since 1955 and for the most part it’s a story of progress.
As the years have gone on, we have seen our disposable incomes rise in most years.
But here’s where it gets gritty, because that run is about to come to a crashing end. Back in March, the Office for Budget Responsibility produced this chart, and it showed the single worst year for disposable income changes since records began in the 1950s.
Back then, Rishi Sunak was chancellor and behind the scenes he was furious with the OBR. Why did they ruin his finely honed spring statement with their chart of misery?
Now roll forward to today. The OBR updated the chart for the autumn statement and the prognosis was even worse.
Now we are facing not just the worst year for household disposable income in modern history, but the two worst years, one after another. It is about as grim as you could imagine.
And if there’s one chart you want to bear in mind over the coming months as households face a squeeze the likes of which they rarely ever have, and many are pushed closer than ever before towards penury, it’s this one.
However, this time around, far from being furious about the publication of the chart, the Treasury has effectively embraced it. And this change in attitude tells you rather a lot.
Whereas Mr Sunak once wanted to play down the economic misery facing the country, today he wants to emphasise it.
The government wants everyone to know how tough things are because the fiscal remedies it’s implementing in the autumn statement would be doubly unpalatable without some sort of justification.
The rationale in Whitehall is that if people realise how miserable the economic climate is, they might be more willing to put up with another dose of fiscal contraction.
It’s worth saying, however, that the squeeze priced in within the autumn statement is not quite as tough as the pre-event leaks might have suggested
In numerical terms, at least, this is not the austerity we saw during the Osborne years. But for many government departments already cut to the bone, it will feel pretty brutal all the same.
For education and the NHS, there were unexpected increases in funding – but inflation is likely to eat into those increases very quickly indeed.
However, take a step back and look at where the public finances land in five years’ time. Back in March, the plan was to get public sector net borrowing down to £31.6bn by 2026/27. As of the autumn statement, the plan is to get it down to only £80.3bn.
Back in the day, this would have been considered a high budget deficit – above 2% of gross domestic product. Fiscal conservatism this ain’t.
But for all the talk of austerity and cuts, the reality is that the chancellor didn’t cut quite as much as some had expected.
This is not to say there is much joy coming our way from the Exchequer: there will be an average of £55bn of contraction – all to fill in the much-vaunted black hole which some economists argue never really existed.
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But had the chancellor wanted to get the public finances back to where they were supposed to end up as of March, it would have involved an extra £50bn of cuts – truly grisly austerity.
This was, in one sense, a very middle-of-the-road fiscal event: decidedly boring, decidedly unshowy and decidedly lacking in surprises. It reads less like an economic philosophy than an effort to clean up a mess.
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Much of the documents are devoted to accounting for how the potential promises of the Truss era ballooned the public finances in one direction, before being yanked back towards earth in the Sunak era.
The question now is whether unwinding all that spaghetti will actually help the Conservative Party rebuild its trust with the British public.
And, most of all, the question is how the public will fare over the coming months.
The OBR’s forecasts paint a picture of a recession unlike most we’ve felt for a long time – a recession not of the business sector or the financial system, but one that hits consumers square in the pocket.
It’ll be a very painful few months. The difference is that this time around, the government isn’t afraid of charts telling you precisely that.
Glasgow has been a city crying out for solutions to a devastating drugs epidemic that is ravaging people hooked on deadly narcotics.
We have spent time with vulnerable addicts in recent months and witnessed first-hand the dirty, dangerous street corners and back alleys where they would inject their £10 heroin hit, not knowing – or, in many cases, not caring – whether that would be the moment they die.
“Dying would be better than this life,” one man told me.
It was a grim insight into the daily reality of life in the capital of Europe’s drug death crisis.
Scotland has a stubborn addiction to substances spanning generations. Politicians of all persuasions have failed to properly get a grip of the emergency.
But there is a new concept in town.
From Monday, a taxpayer-funded unit is allowing addicts to bring their own heroin and cocaine and inject it while NHS medical teams supervise.
It may be a UK-first but it is a regular feature in some other major European cities that have claimed high success rates in saving lives.
Glasgow has looked on with envy at these other models.
One supermarket car park less than a hundred metres from this new facility is a perfect illustration of the problem. An area littered with dirty needles and paraphernalia. A minefield where one wrong step risks contracting a nasty disease.
Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility
It is estimated hundreds of users inject heroin in public places in Glasgow every week. HIV has been rife.
The new building, which will be open from 9am until 9pm 365 days a year, includes bays where clean needles are provided as part of a persuasive tactic to lure addicts indoors in a controlled environment.
There is a welcome area where people will check in before being invited into one of eight bays. The room is clinical, covered in mirrors, with a row of small medical bins.
Clean needles are provided to lure addicts to inject in a controlled environment
There are eight bays users can inject in
We were shown the aftercare area where users will relax after their hit in the company of housing and social workers.
The idea is controversial and not cheap – £2.3m has been ring-fenced every year.
The aftercare area
Read more: ‘Dying would be better than my £1,000 a month heroin addiction’
Authorities in the city first floated a ‘safer drug consumption room’ in 2016. It failed to get off the ground as the UK Home Office under the Conservatives said they would not allow people to break the law to feed habits.
The usual wrangle between Edinburgh and London continued for years with Downing Street suggesting Scotland could, if it wanted, use its discretion to allow these injecting rooms to go ahead.
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The stalemate ended when Scotland’s most senior prosecutor issued a landmark decision that it would not be in the public interest to arrest those using such a facility.
One expert has told me this new concept is unlikely to lead to an overall reduction in deaths across Scotland. Another described it as an expensive vanity project. Supporters clearly disagree.
The question is what does success look like?
The big test will be if there is a spike in crime around the building and how it will work alongside law enforcement given drug dealers know exactly where to find their clients now.
It is not disputed this is a radical approach – and other cities across Britain will be watching closely.
Temperatures in northern parts of the UK could fall as low as minus 20C on Friday night as wintry weather continues, the Met Office has said.
There are yellow warnings for ice on Friday morning covering the eastern coast of England and Scotland, the South West, Wales and Northern Ireland.
There is also a yellow warning for snow and ice for northern Scotland. All the warnings expire before midday.
In addition, freezing fog is predicted across central and southeast England, and in parts of Wales, which may be “quite stubborn to clear” on Friday morning, said Met Office meteorologist Liam Eslick.
“It’s going to be another cold couple of days,” he added, and all areas of the UK are likely to experience sub-zero temperatures.
St Andrew’s church at Kiln Pit in Durham. Pic: PA
Friday night may bring the coldest temperatures of the current cold snap, with temperatures possibly plummeting as low as minus 15C or even minus 20C.
“That’s probably the lowest limits we’re expecting,” Mr Eslick said.
“We probably don’t really expect many places to get close to minus 20C, but we could see one or two places that could just touch that mark overnight Friday into Saturday.”
That is because of still conditions, high pressure, “not a lot of wind and clear skies”.
In addition, snow on the ground helps to create “sort of a perfect scenario to see those temperatures just plummet”, Mr Eslick added.
Saturday is also likely to be bitterly cold, while Sunday is forecast to be a little warmer.
On Monday, temperatures are expected to be more in line with the seasonal norm, at about seven or eight degrees Celcius.
A woman feeds ducks in a frosty High Wycombe. Pic: PA
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The freezing conditions have led to travel disruption, with Manchester Airport closing both its runways on Thursday morning because of “significant levels of snow”. They were later reopened.
Transport for Wales closed some railway lines because of damage to tracks.
Hundreds of schools in Scotland and about 90 in Wales were shut on Thursday.
Meanwhile, staff and customers at a pub thought to be Britain’s highest were finally able to leave on Thursday after being snowed in.
The Tan Hill Inn in Richmond, North Yorkshire, is 1,732 feet (528m) above sea level.
Six staff and 23 visitors were stuck, the pub said on Facebook.
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