New analysis reveals the government’s wholescale failure to grow the economy and to level up Britain, with figures showing that in every region in Great Britain real wages are lower now than when the Tories came to power in 2010.
Across the country as a whole, real wages are down by an average of 5%, leaving people £1,600 a year worse off than they were in 2010. Wages in the North East have fallen by £900, resulting in a 3% cut.
Decreases right across the North East
All constituencies across the North East have experienced real terms wage decreases. Hexham has experienced the largest decrease in the North East with a decline of 22 %, meaning wages are £9,885 lower in real terms than in 2010.
A crucial component of getting wages up and improving living standards is growing the economy, something that has stalled under the Tories.
If the economy had continued to grow at the same rate as it had been with the last Labour government, then there would be £30 billion more to spend on public services without having to raise a single tax.
Response from Labour’s Shadow Chancellor
Labour’s Shadow Chancellor Rachel Reeves said:
“These figures don’t just underline a lack of growth under the Tories. They show the complete failure over 12 years to build an economy that actually works in the interests of working people.
“Married with the billions upon billions of taxpayer money that has been wasted on undelivered projects, crony contracts, unsafe PPE and Tory vanity projects, it shows just what irresponsible stewards of the economy the Conservatives are.
“Labour will stabilise our economy, and we will get it growing with our Green Prosperity Plan and our active partnership with British businesses.”
From North East Labour MPs
Chi Onwurah, MP responding on the impact of wages falling by 3.4% in Newcastle Central, said:
“The legacy of Conservatives’ twelve years of austerity, chaos and trickle-down economics in the North East has been rising child poverty and lower living standards for everyone.
“In my constituency of Newcastle Central, families are £1,020 poorer as a result of this government’s policies, and they have no plan to reverse stagnating and declining wages.
“We had three Prime Ministers and four chancellors in 2022 and not one of them had anything to offer for working people in the Newcastle Central and the North East.
“Only a general election and a Labour Government can deliver the economic security and growth to support working people in North East”
Stockton North MP Alex Cunningham has accused the Conservative Government of short-changing working people as new analysis reveals that the value of wages in Stockton North constituency has fallen by £2,276, or 7.4%, since 2010. He said:
“After over a decade in government all the Tories have to show for it is a cost-of-living crisis of their own making and an attack on people’s pay packets. “
The figures for the North East (showing drop in wages)
|Berwick-upon-Tweed: 13.5% – £4,514|
|Blaydon: 4% – £1,307|
|Darlington: 8.7% – £2,699|
|City of Durham: 4.9% – £1,552|
|Easington: 3.6% – £1,090|
|Gateshead: 6.9% – £2,072|
|Hartlepool: 2.9% – £934|
|Hexham: 22.0% – £9,885|
|Jarrow: 0.4% – £134|
|Middlesbrough: 4.7% – £1,345|
|Newcastle upon Tyne Central: 3.4% – £1,020|
|Redcar: 4.6% – £1,381|
|South Shields: 8.0% – £2,485|
|Stockton North: 7.4% – £2,276|
|Stockton South: 4.4% – £1,496|
|Sunderland Central: 6.2% – £1,885|
|Tynemouth: 5.4% – £2,028|
|North Tyneside: 6.1% – £1,780|
|Wansbeck: 10.9% – £3,560|
|Washington and Sunderland West: 7.1|