Regional figures showing how the average earner in the North West will see their earnings fall by £1,194 in the next year alone, relative to inflation, under the new plans announced by the Chancellor in his Spring Statement last week.
Rochdale MP, Tony Lloyd, said, “Workers in Rochdale are facing a sharp squeeze on their wages, and across the North West people are losing a staggering £1,194 from their pay packet in the next year alone.
“The Chancellor in his Spring Statement merely promised jam tomorrow rather than the support that is needed now. The Statement also lacked long-term plans for productivity, skills and growth, which business across the North West play a vital role in.
“The government has got to get a grip on spiralling inflation and the rising cost of living crisis which is leaving people worse off.
“Not only is it leaving people worse off and worried about paying the bills, it’s stopping their spending going back into our North West economy so our businesses and our growth is suffering.
“Last Wednesday was the day for the Chancellor to scrap his unfair tax hike on working people and on businesses. It was the day for him to bring in a one-off windfall tax on oil and gas producers, to take up to £600 off people’s energy bills. It was the day to set out a plan for British businesses.
“In failing to do any of these, the Chancellor made the wrong choices for the people of Rochdale and our country.”
Labour heavily criticised the Chancellor after it emerged that not only would working people still be hit with the biggest tax burden since the 1940s – but that living standards look to plummet at the fastest rate seen since records began.
Labour’s Shadow Chancellor called on the government to scrap the damaging, unfair National Insurance rise, and to chose a one-off windfall tax on oil and gas producer profits instead – to take up to £600 off the energy bills of households struggling with the rising cost of living crisis.
And she also slammed the Chancellor for his lack of a long term plan for growing the economy or wages – saying that his current plans set out no plan for tackling waste or fraud that has run riot under his watch, nor any vision for creating prosperity and security across the UK.
Labour’s figures show that
- Workers in the North West will see their real earnings fall by £1,194 a year by 2023 under the Chancellor’s plans
- Workers in the North East will see their real earnings fall by £1,107 a year by 2023 under the Chancellor’s plans
- Workers in the West Midlands will see their real earnings fall by £1,234 a year by 2023 under the Chancellor’s plans
Notes to editors:-
- The OBR Economic and Fiscal Outlook, published alongside the Chancellor’s spring statement, reveals that forecast average earnings growth is expected to fall well short of forecast inflation in both 2022 and 2023. Cumulatively over that period, the OBR forecast that earnings will fall by 3.5% relative to inflation. That means the real value of earnings will decline. https://obr.uk/docs/dlm_uploads/CCS0222366764-001_OBR-EFO-March-2022_Web-Accessible-2.pdf Table 1.1 Page 12
- The Office for National Statistics Annual Survey of Hours and Earnings provides information on the average pay of full-time workers in 2021 for each region and nation of the United Kingdom.
- annual survey of hours and earnings – resident analysis, mean gross annual pay for full time workers
- Applying the figure of -3.5%, the forecast fall in real earnings between 2021 and 2023, to these figures provides a forecast of the fall in average pay in each region and nation, relative to inflation.