Why do we feel so broke?

I recently published a report with the Centre for Policy Studies called "Why we feel so broke?". It got masses of national coverage - The News of the World, Telegraph, Sunday Times, Daily Mail, Express as well as the Radio 4 Today programme, lots of other radio, Channel 4 News and local papers like Your Dover and the Dover Express (but not, of course, the East Kent Mercury).

The report shows that the average UK family is paying almost £8,000 a year more in tax than in 1997, while stagnating earnings are making it harder for households to meet these and other rising costs, a report claimed today.

The average household now pays around £16,938 in taxes - £7,800 more than when Labour first came to power. The rise, when combined with "excessive debt" and the increasing costs of servicing a mortgage and paying bills, means households are very vulnerable to any economic downturn.

The increases in taxation and the recent availability of easy credit is a potentially toxic mixture.
Until recently, average families were able to absorb tax increases partly through rising salaries and greater levels of personal debt. But since 2005 increases in disposable income after tax and housing costs have stalled or gone into reverse.

To see the report, go to this link: http://www.cps.org.uk/cpsfile.asp?id=997