The Institute for Fiscal Studies has warned of a "grim time" for living standards after the Office for Budget Responsibility forecast that household incomes would fall by seven per cent over the next two years.

Director Paul Johnson said: "That will be the biggest fall in living standards possibly in history, certainly for a very, very long time." Report by Buseld. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn