BRITONS, despite the double dip recession, rising unemployment, a squeeze on living standards and the threat of more economic misery from the eurozone, have never had it so good, according to the nation's most influential economic think-tank.

The Institute for Fiscal Studies (IFS), to mark the occasion of the Diamond Jubilee, has compared living standards at the time of the Silver Jubilee in 1977 with now or rather 2009/10, the year for which the most up-to-date statistics are available.

Economists at the think-tank have noted that, while in some ways the current economic downturn is worse than a generation ago – incomes are falling faster and public spending is being cut more severely – nonetheless, comparing the level of living standards, Britons are today much better of.

Incomes, for example, have more than doubled in more than 30 years, much more spending goes on luxuries rather than necessities like food, more people have a car, more women are in paid work while many of us are much better educated with the number of people with degrees having increased eightfold.

David Cameron, who is attempting to rebalance the economy away from the service sector towards manufacturing, might note how in 1977 one in four British workers made things while today it is just one in 10.

Paul Johnson, IFS director and one of the authors of the report, says: "Economic times are undoubtedly tough today but it is easy to forget just how much better off we are now than we were just 35 years ago. Average incomes are twice as high now. We are much better educated and we have access to far more in the way of consumer durables.

"It is important sometimes to step back and appreciate just how much things tend to change for the better over time. Annual economic growth of a couple of per cent a year transforms lives over a generation," he added.

The report points out that spending patterns for 1977 compared to 2009/10 show individuals' expenditure on leisure services has doubled to 10%.

By comparison, the state is more heavily engaged in welfare provision whether it is spending on health care or benefits. Social security and health took up one-third of public expenditure in the late 1970s; they now account for one-half. Consequently, spending on housing, defence and support for industry has fallen back.

The IFS warns the growth in the number of graduates leaves a minority of those with very poor levels of education struggling in the labour market.

Another sign of how things have changed in 33 years is that none of the goods used by the Office for National Statistics to compile inflation statistics in 1977 such as cine film, radio licences, party containers of beer, luncheon meat, condensed milk, lard and carpet tiles, are used today.

Despite its Macmillanesque summary, the think-tank also concedes "not everything is rosy". While all family types have benefited from rising incomes, inequality has increased significantly. Even after tax, the richest 1% of Britons now have 9% of all income; in 1977, they had just 3%.

Meanwhile, tax consultancy PwC has analysed the last 60 years of the Queen's reign and explains that, during this period, there have been massive social and economic changes in Scotland with average weekly wages for men soaring from £7.54 to £517.70.

However, this has to be put in context as ,over the same period, inflation has pushed up prices, which are now 24 times higher than when Queen Elizabeth ascended the throne.

PwC says that, during the last 60 years, the Scottish economy has tracked very closely the UK average in terms of both total income and income per head.

In real, constant price, terms it is about four times larger than it was in 1952. Then, Scotland's traditional and heavy industries were still enjoying an Indian Summer in the unusual conditions of the early post-Second World War recovery, explained the tax consultancy.

During 1948-51 Scottish yards launched 15% of all the ships made anywhere in the world, although, by 1958, that share had slipped to 4.5%.

In June 1952, Scotland's unemployment rate was one and a half times the GB average but it was only 3.2%. In comparison, today's claimant count rate at 5.2% only slightly exceeds the UK average of 4.9%.