LONDON, March 15 Reuters Britain remains on track for a record fall in living standards over the two years to the end of March 2024, despite an upward revision to growth forecasts, the Office for Budget Responsibility OBR said on Wednesday.

The OBR said real household disposable income per person was on course to fall by a cumulative 5.7 over 202223 and 202324, 1.4 percentage points less than it forecast in November but still the biggest twoyear drop since records began in 195657.

The fall mainly reflected the higher cost of energy and other goods imports, and living standards were still expected to be 0.4 below prepandemic levels in 202728, the OBR added in forecasts alongside finance minister Jeremy Hunt39;s annual budget.

Developments since our November forecast have been largely positive, but the economy still faces significant structural challenges, the OBR said.

Britain39;s tax burden, measured as a share of economic output, was on course to rise to its highest since World War Two at 37.7 by 202728, while public spending would settle at 43.4, its highest since the 1970s.

The OBR also said it stuck with its assessment that the costs of Brexit through reduced trade and investment as well as immigration barriers would lower Britain39;s productivity by 4 over the long term compared with staying in the EU.

Reporting by David Milliken; editing by William James and Kate Holton

Source Reuters