According to a new report which was conducted by Doloitte, UK households could face a decrease in disposable income of £780 a year.

The financial services company has stated that changes to Government tax and spending along with higher inflation pushing up prices was the reason for the fall.

Deloitte’s chief economic adviser Roger Bootle said, “Given high debt and given all the other pressures on consumers and given the state of the housing market, I think even a small increase in interest rates could prove to be very dangerous”.