Research carried out by a think tank at the Institute of Fiscal Studies (IFS) has shown that Britain is currently experiencing its slowest economic recovery in history, with the cuts and tax rises implemented by George Osborne leading to the slowest recovery in living standards ever recorded in the UK.
Osborne believes that the country is in a better financial position than it was five years ago, but many seem to disagree. Although average household incomes are now back to the level that they were at before the global financial crash, the average wages that adults receive are still significantly lower than in 2007/8. The main reason for this is because a large portion of every adult’s wage is being held back for Osborne’s tax increases and benefit cuts.
Although incomes always fall when there is a financial crash, the fact that they are taking so long to recover is surprising and slightly worrying. The chancellor has spoken out about the vast amount of damage that has been done to Britain’s economy, and states that the recovery needs to be secured and protected rather than put at even more risk. Cathy Jamieson, who is the shadow financial secretary to the Treasury, believes that this will be the first time since the 1920s that the population will be worse off at the end of parliament than at the beginning. Jamieson also believes that the plans that Labour have to increase productivity will help to contribute to a rise in living standards, and will hopefully be a successful plan which will aid long term economic recovery.