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Rachel Reeves Budget measures mean that by 2028 weekly wages will have grown by £13 pounds over the last twenty years, an economic think-tank has said.
The Resolution Foundation has warned that the pay outlook is “dire” and many UK workers will not feel any better off by the end of this Parliament.
Mike Brewer, Interim Chief Executive of the Resolution Foundation, said: “The short-term effect of these changes will be better funded public services.
He added: “But families are also set for a further squeeze on living standards as the rise in employer National Insurance dampens wage growth.”
It comes as the IFS has warned that Ms Reeves long term spending plans are as unrealistic as the Tories.
IFS director Paul Johnson said that Ms Reeves’ current plans mean a 4.3 per cent jump in spending next year, 2.6 per cent the year after and then 1.3 per cent in each of the following years.
Mr Johnson said: “I’m afraid this looks like the same silly games playing as we got used to with the last lot. Pencil in implausibly low spending increases for the future in order to make the fiscal arithmetic balance.”
Labour MPs showed ‘unreality’ in reaction to Budget, says Tory MP
Labour MPs showed “a complete lack of unreality” in their reaction to the Budget, Conservative MP Sir Bernard Jenkin has said.
Speaking in the Commons he said: “When I say that this is happening in a political bubble, it was ironic that the biggest cheer from the Labour benches yesterday seemed to be for the 1p cut in draught beer duty.
“But I have spoken to people in the hospitality industry since the Chancellor sat down yesterday, and they described this as a shattering Budget, because of course what publicans and restaurateurs will have to pay their staff and pay for their staff massively dwarfs any benefit that they could possibly hand on to their customers by a 1p duty cut.
“And in fact, most of the cost of the increases in beer that we will see as a result of this Budget are as a direct consequence of the tax increases that are being inflicted on business as a result of this Budget.
“So I’m afraid those cheers demonstrate a complete lack of unreality about the world that we’re in.”
Meet the parents taking the government to court over VAT on private schools
It was the manifesto promise made a reality in the first Labour Budget for 14 years, but will a legal challenge from anxious parents force a U-turn? Zoë Beaty reports
Increasing minimum wage will make it harder for young people to get jobs, former Tory minister claims
Increasing the national minimum wage for young adults will make it harder for them to get jobs, a Conservative former minister has told the Commons.
Sir John Whittingdale said: “If you increase the cost of employing people, it can have only two consequences, one is lower wages and the other is fewer jobs. And in each of those cases, that is going to hit working people.
“The decision to increase the national minimum wage for young adults, a 16% increase, that will simply have a consequence that it will be even harder for those people to find jobs.”
The MP for Maldon also criticised the Government’s plans to impose VAT on private school fees, adding that parents in his constituency who send their children to private schools “are not rich, they make huge sacrifices”.
He went on to say: “The consequence is the children will need to be placed in state schools which are already under huge pressure, my constituency is growing rapidly, there is enormous pressure on schools and this is simply going to make it worse.
To the less well off, Reeves giveth… from the rich, she surely taketh away
There was one big loser in Rachel Reeves’s historic tax-hiking Budget – the wealthy individuals who are going to have to pay for it all, says Chris Blackhurst
Keir Starmer creates new ‘Europe Hub’ as PM eyes closer ties with EU post-Brexit
The Home Office is creating a new “Europe Hub” as part of Sir Keir Starmer’s drive for closer ties with the European Union.
The new unit, which will sit within the International Strategy, Engagement and Devolution Directorate, will reportedly be led by Dan Hobbs, director general of the Migration and Borders Group.
Civil servants have been told the department will have responsibility for “ensuring that our strategic approach to this work is coherent, working collaboratively across the department”.
Watch: Rachel Reeves appears to say Kemi Badneoch already Tory leader
GB News fined £100,000 by Ofcom for breaking impartiality rules over Rishi Sunak interview
GB News has been fined £100,000 by Ofcom after it was found to have broken impartiality rules in an interview with Rishi Sunak earlier this year.
The media watchdog concluded that the channel had given the then prime minister a “mostly uncontested platform” to promote the policies and performance of his government as he answered questions put to him by a studio audience and a presenter.
Ofcom began the investigation into GB News three days after the airing of a programme on February 12, titled People’s Forum: The Prime Minister.
NHS workload likely to go up not down, says Starmer
The NHS’ workload is “likely to go up, not down”, Sir Keir Starmer said, as he hinted at reforms the government might make to assist healthcare staff.
At a Q&A in the West Midlands, the PM said: “I also want to be honest with you, we are going to be asking more of you. There’s no point me standing here and saying your workload will go down.
“The whole point is people are living longer. They’ve got more conditions, what the NHS is facing now is different to what it was facing in the post-war period, your workload is likely to go up, not down.”
The Prime Minister signalled administrative change was among the reforms he was planning, including “making sure that AI and technology is your friend” to prevent duplication of records.
Rachel Reeves, meanwhile, criticised the previous government for “always raiding the capital budgets” and taking funding away from investment.
The chancellor said: “We have got to make those longer-term investments to drive those productivity and efficiency reforms as well.”
PM and chancellor talking to staff at University Hospitals Coventry and Warwickshire
The prime minister and chancellor are talking to staff at University Hospitals Coventry and Warwickshire.
Sir Keir was thanked for the extra NHS funding by Dr Amy Burridge, a consultant in acute medicine, but she asked how that income could deal with staffing gaps and burnout
Sir Keir said the first thing his government would provide was a “mindset change” from the Tories, who he said “blamed” NHS staff for problems in the service.
He said the Government would “really go much much faster on the technology that you need to take some of the weight off”.
The PM added: “Look, I’m not going to pretend that by next week it will all be fixed, because too many politicians have done that.
“It is going to take time, but what we did in the Budget yesterday is the first step, the down payment if you like, down that road, to make sure that you can do your jobs better and we can have the NHS that we need.”
