This is how much the average worker's wages will drop in Milton Keynes in the next year

New figures published today by MK Labour reveal the “staggering hit” to wages facing local people by 2023, as the average earner will see their real wages fall by £1,197.63.

Not only will working people be hit with the biggest tax burden since the 1940s – but living standards look to plummet at the fastest rate seen since records began, say Labour.

The Shadow Chancellor has called on the government to scrap the damaging, unfair National Insurance rise, and to choose a one-off windfall tax on oil and gas producer profits instead – to take up to £600 off the energy bills of households struggling with the rising cost of living crisis.

Councillor Rob Middleton, Cabinet member for Resources at MK Council, said: “The cost of living crisis is hammering families in Milton Keynes. But all we got from the Chancellor in his Spring Statement last week was a promise of jam tomorrow rather than the support that is needed now – and now we learn that workers in the city are facing a sharp squeeze on their wages, losing £1,197.63 from their pay packet by next year.

“We've got to get a grip on spiralling inflation and the rising cost of living crisis which is leaving people worse off.

“Not only is it leaving people worse off and worried about paying the bills - it's stopping their spending going back into our local economy so our businesses and our growth is suffering.

He added: “Last Wednesday was the day for the Chancellor to scrap his unfair tax hike on working people and on businesses. It was the day for him to bring in a one-off windfall tax on oil and gas producers, to take up to £600 off people's energy bills. It was the day to set out a plan for British businesses.

“In failing to do any of these, the Chancellor made the wrong choices for Milton Keynes, and our country.”

The OBR Economic and Fiscal Outlook reveals forecast average earnings growth is expected to fall well short of forecast inflation in both 2022 and 2023.

Cumulatively over that period, the OBR forecast that earnings will fall by 3.5% relative to inflation.