EARNINGS in Scotland have fallen by 12.6 per cent in real terms since the banking crash six years ago, according to a new analysis.

GMB Scotland also found wide variations across the country in the impact on average earnings between April 2008 and April this year.

In cash terms, average gross earnings in Scotland have risen from £23,934 in 2008 to £25,581 this year, an increase of £1,647 or 6.9 per cent.

However, inflation has pushed prices up by 19.5 per cent over the period.

"This means the drop in real value of average earnings in Scotland between April 2008 and April 2014 has been 12.6 per cent," the GMB Scotland study said.

The value of earnings has fallen furthest in Stirling, where workers' buying power has been cut by 23 per cent on average.

The value of earnings has seen a similar fall in East Lothian, while the real terms fall in the Scottish Borders has been 19.1 per cent.

West Lothian has been least affected by the recession, with a real terms fall in the value of wages of 2 per cent. Clackmannanshire and Moray also escaped big drops.

The value of wages fell 17 per cent in Edinburgh, 10.8 per cent in Glasgow, 9.7 per cent in Dundee and 8.9 per cent in Aberdeen.

Across the UK as a whole, the value of average earnings has fallen by 15.1 per cent. Londoners have been hardest hit, facing a 23.1 per cent cut in buying power, according to the trade union.

Only the East of England and North East of England have been hit harder than Scotland.

Harry Donaldson, Secretary for GMB Scotland said: "These figures are a damning and shocking indictment of how the Tories have run the economy and who has benefited from their time in office.

"It has been the bankers and financiers first and working people and their families last.

"This must change in 2015. If George Osborne is still in charge of the economy this time next year, Father Christmas will have to make half of his reindeers redundant and cut the pay of the elves by 25 per cent."

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