Britain’s slowing economy has cost families £1,400 a year, the Resolution Foundation has said.
The think tank said households have borne the brunt of Britain’s economic decline over the past 15 years, which has been fuelled by shocks such as the financial crisis and the Covid-19 pandemic.
Its latest report has found that the UK economy’s slowdown has led to it being 4pc smaller than it could have been after stumbling “from one major crisis to the next”.
The Resolution Foundation said the rate of economic change, where underperforming industries are left behind by more innovative sectors, has fallen to its lowest level in 90 years.
Greg Thwaites from the Resolution Foundation said: “Britain needs more, not less, economic change. We need successful firms to grow, and struggling ones to shrink.
“While many people assume this severe economic turbulence has led to major economic change, in fact, the opposite is true.”
He said the economy is suffering “from a Great British slowdown which has left families poorer”.
The research found that the rate of individual firms shrinking or growing had declined by a fifth since 2008, equivalent to 7.5m fewer jobs moving between companies.
While such stability may sound appealing to workers, salaries and economic growth have suffered as a result, the Resolution Foundation said.
Economic growth has been underwhelming in the UK ever since the financial crisis, which dampened productivity across businesses.
Debates to address this well-known issue - often branded the productivity puzzle by economists - have been too focused on existing companies, the think tank said.
It argues that policymakers and academics spend too much time discussing how to boost the performance of cutting-edge firms or exploring how to innovate less productive businesses.
The Resolution Foundation said policymakers should make it easier for workers to move jobs more frequently so they can increase their earnings and experience.
To do so, its researchers are urging Jeremy Hunt to slash the rate of stamp duty.
However, the Chancellor has been clear that his hands will be tied when it comes to delivering tax cuts next year, recently claiming that they will be “virtually impossible”.
The report from the Resolution Foundation comes as accountancy firm KPMG forecasts that Britain’s economy will slow down even more next year as interest rates remain high.
GDP growth will slip from 0.4pc this year to 0.3pc in 2024, KPMG’s economists said, slashing next year’s outlook from a previous prediction of 1.1pc.
“With the backdrop of weakening global economic conditions coupled with the lagged impact of higher interest rates, the UK economy could struggle to keep its head above water in the second half of the year,” KPMG’s latest economic outlook has warned.