//
According to the Annual Discretionary Income Study, after household bills and tax deductions, the typical British family has less than 20 per cent of its gross income left over. In 2003, the figure was 28 per cent, reports the BBC.
Jason Gordon, director of retail at Ernst & Young, said that a considerable decline in discretionary income meant UK consumers were not in a position to spend as freely as they previously could.
He commented: "Many UK consumer segments are clearly feeling the pinch as big rises in household costs are far outstripping relatively modest wage inflation."
The report showed that monthly discretionary income was now £772.79, down from £909.84 in 2003/04.
According to Bloomberg, the government faces a backbench rebellion against plans to abolish the lowest income tax band.
Become an independent investor with the help of Knowledge to Action.
