UK consumers will see their disposable income fall by £780 per household this year, according to a Deloitte report.
Chief economic adviser at the firm Roger Bootle said consumers may have to cut their spending by 1% in response this year, the BBC reports.
Bootle predicted spending would also drop 0.5% in 2012 while incomes will not begin rising again until the end of 2012.
Deloitte said households' disposable income will not recover to 2009 levels until 2015, and real earnings will fall for the fourth year in a row this year.
Has been cold-calling consumers
New shares admitted to London Stock Exchange
Slow and steady growth
Missed funding target by £240,000