UK tumbles down spending league as our disposable income plummets
THE spending power of the average home has plummeted during the financial downturn, it was revealed yesterday.
Britain has tumbled down the ranks of the world’s major economies, with household incomes here falling behind those of Australia and France.
The UK fell from fifth to 12th place between 2005 and 2011 among 30 states that belong to the Organisation for Economic Co-operation and Development.
The table of disposable income per head showed the UK had fallen substantially in the rankings while other countries maintained a relatively stable position, said the Office for National Statistics.
The UK fell from fifth to 12th place
The decline has been partly blamed on the drop in the value of the pound.
It has meant that while income had grown, spending power did not stretch as far when compared to other countries.
The ONS said the slip in the international ranks “highlights the relative experience of UK households since the recession”.