New figures published by Reading Labour today reveal the staggering hit to wages facing local people by 2023. New analysis shows the average earner in Reading will see their real earnings fall by £1,300 by 2023.
Not only will working people be hit with the biggest tax burden since the 1940s – but living standards look to plummet at the fastest rate seen since records began.
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.
Labour’s Shadow Chancellor has called on the government to scrap the damaging, unfair National Insurance rise, and to choose 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.
Cllr Jason Brock, Leader of Reading Borough Council, said:
“The cost of living crisis is hammering families in Reading. But all we got from the Chancellor in his Spring Statement last week was a promise of jam tomorrow rather than the support that is needed immediately – and now we learn that workers in Reading are facing a sharp squeeze on their wages, losing £1,300 from their real terms pay packet by next year.
“We’ve got to get a grip on spiralling inflation and rising costs that are leaving people worse off.
“Not only is it making people worried about paying the bills, it’s also stopping their spending going back into our local economy, so our businesses and our growth is suffering.
“Last week was the Chancellor’s opportunity to scrap his unfair tax hike on working people and on businesses. The Spring Statement 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 Reading, and for our country.”