Squeeze on pay

The Institute for Fiscal Studies forecasts real term wages will be lower in 2021 than in 2008.

Today’s papers

Living standards are predicted to decline as workers endure a decade of eroding pay rates, according to Paul Johnson of the Institute of Fiscal Studies. The Financial Times quotes him as saying :“One cannot stress enough how dreadful that is—more than a decade without real earnings growth.” Mr Johnson was presenting his analysis of the latest official economic forecasts from the Office for Budget Responsibility, during which he was invited to criticise the government’s decision to invest in research and development. Mr Johnson said that he thought the strategy was broadly right, which goes unreported but is worth knowing. We have assembled all our news and comment relating to chancellor Philip Hammond’s autumn statement into a single package.