The Centre for Policy Studies in the UK has released a study entitled 'Why do we feel so broke' in which it describes how fragile the UK economy really is. It claims that family budgets are nearly £1000 worse off than 5 years ago.
The research labels increasing tax burden, rising fuel costs and high interest rates as causes for the downturn in people's finances. It also states that things are set to get worse as the economy slows and the government plans new taxes.
The increase in debt is also a factor that makes UK households more vulnerable to a slow down in the economy.
The tax burden is said to have risen by £7,800 per household since Labour took power. Interest payments are up 80% from 5 years ago.