June 21, 2024

Britain’s income growth has lagged behind other countries under Conservative rule, according to a think tank.

In the 12 years to 2019, UK incomes grew at half the rate of the US and lagged behind those in Germany. That period covers most of the Conservative Party government, researchers said on Friday.

As the campaign for the July 4 election focused largely on the economy, the non-partisan Institute for Financial Studies (IFS) said Britain’s average income fell between 2007 – the start of the global financial crisis – and 2019, before Covid. 19 Crisis 19 Pandemic, increased by 6%.

By comparison, it rose 12% in the US and 16% in Germany, according to the data, reflecting other signs of declining incomes in Britain relative to other rich economies.

Britain’s relative performance has not improved in the post-pandemic years, the IFS said.

“Although growth has slowed internationally since the financial crisis, the UK has become one of the weakest countries, having been one of the fastest growing countries before the Great Recession,” said Tom Waters, co-director of the IFS.

Of the 14 countries surveyed by the IFS, France, Spain and Greece performed worst over the period.

British Prime Minister Rishi Sunak – struggling to improve the Conservatives’ low poll numbers – says the economy is now turning the corner after the pandemic and rising energy prices.

The opposition Labor Party blames the Conservatives for the economic failure since coming to power in 2010.

According to the IFS, average incomes in the UK rose by 6% between the financial years 2009/10 and 2022/23, significantly slower than the 30% growth expected before the global financial crisis.

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Weak wage growth underscores the need to improve the country’s weak productivity record, the study said. (Writing by William Schomberg; Editing by Sriraj Kalluvila)