Tuesday, 20 August 2013

Cameron's out of touch - and you're out of pocket

David Cameron has overseen a higher fall in living standards than any Prime Minister on record. He has seen living standards fall for 35 consecutive months.

If you listened to Cameron in the past you could be forgiven for thinking living standards were an issue that concerned him. The Tory manifesto stated that they wanted to see an economy where standard of living “rises steadily and sustainably”. And in January last year Cameron claimed that “We helped where can with the cost of living”.

These are not statements that I can recognise as having any bearing on reality whatsoever.

The North West has seen one of the biggest falls in the country – since Cameron got the keys to Number 10, our region has seen an average 7.8% real terms fall in wages. That is the equivalent of £1,685 less per year on average that my constituents have to feed and clothe their families.

We compare very badly internationally, as the graph below shows, the UK has fared worst in the G7 group of countries in terms of income since 2010:

This has happened in part because of the Government’s decision to put VAT up to 20%, which has pushed up prices across the board and means that inflation has consistently been above the Bank of England’s 2% target. When this is combined with the very low growth figures Cameron and Osborne have overseen since taking office – wages have not been able to keep up, and my constituents are suffering.

However there is a one group that is doing well – the super-rich. Since David Cameron’s decision to reward his friends in the banking sector with a tax cut, bonuses in the financial and business services sector rose by 82.2% compared to the same month last year. As you can see from the graph below, this was because bankers delayed their bonuses until the tax cut came into effect in order to take advantage of Cameron’s tax cut handout:

Cameron is out of touch, and you are out of pocket.