BRITAIN’S 19 million families are set to face the worst decade for income since modern records began 70 years ago, Labour says today.
The party claims the Conservatives’ “record of failure is costing the average household over £1,000 this year alone”.
Using figures from the Office for National Statistics[ONS] and the Office for Budget Responsibility[OBR], the UK Government’s independent economic forecaster, Labour says:
*the UK is set to face the worst decade for household income growth since 1949;
*forecasts for household income growth this year are at zero per cent and
*predictions for household income growth for next year and every year until 2021 have been cut.
Peter Dowd, the Shadow Chief Secretary to the Treasury, said: “Today’s analysis reveals the truth about the Tories’ woeful record on living standards.
“Under them, real wages have fallen and tax and social security changes are leaving working families worse off. This is at the same time as the Tories have pledged to cut Corporation Tax to record low levels.
“The next Labour government will ensure working people’s living standards are protected with a real Living Wage of £10 per hour and invest in a high-skill, high-wage economy that works for the many, not the few,” he added.
Labour pointed out how the OBR said real household disposable incomes were “expected to stagnate in 2017” with forecasts for real household disposable income[RHDI] growth of 0 per cent this year. The party noted how households had only experienced lower RHDI growth than this eight times since 1949.
It also pointed out how the latest OBR Economic and Fiscal Outlook suggested forecasts for RHDI cut this year, next year, and every year up to 2021.
This, said the Opposition, means that, under the Tories, the decade 2010-2020 was set to be the worst decade for real household income growth since 1949, hitting household finances.
It went on to say that, since 2010, the average household was paying more in both direct and indirect taxation; a total of nearly £2,000. Nearly three quarters of this alone was “because the Tories broke their promise not to increase VAT”.
Labour also noted how the Tories’ 2017 election manifesto pledged to cut Corporation Tax but failed to match Labour’s pledge to protect 95 per cent of people from any rises in VAT, National Insurance contributions or Income Tax.
It said, Philip Hammond, the Chancellor, had refused to say whether or not he would raise taxes on low and middle earners, cut public services or borrow more to pay for his U-turn on self-employed National Insurance contributions and the £1 billion promised as part of the Tories’ deal with the Democratic Unionist Party.
Conservative MP Amanda Milling said: “When Labour were in power they brought the country’s economy to its knees making working families pay the price.
“Under the Conservatives three million people have the security of work and the ability to provide for their families.
"At the same time the gap between high earners and low earners is at its lowest levels in over 30 years. Labour’s financial plans would see higher taxes and more spending hitting ordinary working people the most.
“Only the Conservatives can balance the country’s books and eliminate the deficit ensuring that future generations do not pay when we fail to live within our means.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel