UK standard of living drops below 2005 level

It’s quite a claim on the last day of the decade as we push towards a new era with the advent of the demise of the Parliamentary Labour Party.

Given the size of the claim does it stack up against the even bigger claim by Gordon Brown to have ended boom and bust and that Britain was better positioned than others to weather the recession? Considering that Britain is still in recession whilst every other G20 country has prospered one has to consider the claim by the Oxford Economics ThinkTank to be factual.

There are a number of economists who believe the country returned to growth within the Q4 2009 though considering the artificial spending patterns in November and December and the last minute rush to gain what can be gained from the reduced VAT rate there are a growing number of economists who believe this growth,if real at all to be unsustainable.

It has already been proved that this year has seen the worst performance for our economy since the 1920’s and year on year both Alistair Darling and Gordon Brown are forced to come to the despatch box and state their figures are to be revised.

Oxford Economics findings state that GDP per person fell to £22,700 on average in 2009, down from £23,000 in 2005 after inflation adjustment – a fall of 1.3%. In Labour’s first two terms GDP per head grew 12.6% and 8.3% respectively.

Supposing there may be some recovery in economic growth in 2010, Oxford Economics expects GDP per head to be £22,775 next year (measured in 2009 prices) – which in reality is a reduction in living standards equivalent to £225 per person when compared with 2005.

Adrian Cooper, the managing director of Oxford Economics went on record with the following statement

The decline in UK GDP per capita over the last four years contrasts markedly with the improvements seen over the Labour government’s first two terms

…he further stated

Coupled with the tax rises to be implemented over the coming years – starting on 1 January 2010 – this research underlines the new age of austerity facing the UK economy

There are oh so many woes for this Government but unfortunately that means there are oh so many woes for this country ahead of the General Election #GE10.

We’ve said it before and we reiterate it people, please use your vote and use it wisely.