Is this the worst economic inheritance since WW2?

There are certainly problems facing the next government, but other governments in the last 80 years have also faced big economic challenges. Margaret Thatcher came to power in 1979 at the time of an oil crisis and rapidly-rising prices. The coalition government of 2010 followed a global financial crisis. Net debt as a percentage of Gross Domestic Product (GDP) is currently at levels last seen in the early 1960s.

Shadow chancellor said: #34;The tax burden is the highest for 70 years. 39; The tax level, measured by how much of the country#38;s economic output (measured by GDP) is raised in tax revenues, is estimated to be just above 36% this year. Taxation is projected to rise to 37. 1% in the next five years.

This is high historically. It has only been higher last year and in the first two years on record, 1948 and 1949, when the UK was recovering from the war and the NHS was founded. GDP has been relatively flat over the past two years. But there have been recessions during the mid-70s and early-80s.

In 1974, the economy contracted by 3. 7% while inflation was over 10%. This is not the first time the UK has been in recession. Households’ real disposable income (RHDI) per person fell by 2.

2% in 2022-23. The measure is projected to rise by 0. 8% in 2023-24. It will also be the first time on record that households will be poorer on this measure at the end of a parliament, than they were at its start.

Inflation is at 3. 4% which is well above the 2% target, but much lower than some previous governments have had to deal with. The rate of unemployment is at a relatively low level although there is concern about the number of people who have withdrawn from the labour market.