Districts in Birmingham now ranked below poorest areas of France, Slovenia and Malta as institute urges rethink on planned welfare cuts

The UK has tumbled down the league of affluent nations after almost a decade of welfare cuts and stagnant incomes, according to a report that found the poorest districts in Britain now rank below the lowest-income areas of Slovenia and Malta.

In a warning for ministers to protect welfare spending ahead of Rachel Reeves’ spring statement later this month, the National Institute of Economic and Social Research (NIESR) said the UK’s reputation for high living standards was under threat.