- Report: no real-terms wage rise until 2017
- Lowest 10% of earners have seen £300 cut since 2008
- Poorest not seeing benefits of ‘recovery’
- Sajid Javid denies link between wages and income tax receipts
With a report from Ernst & Young warning that families face a “lost decade” with real wages in the deep freeze, cabinet minister Sajid Javid — formerly a junior minister in Osborne’s Treasury — drops a clanger on the Daily Politics:
Andrew Neil: The reason why you’re not able to cut the deficit is because income tax receipts are barely rising … because ordinary people in this country are going through a huge squeeze on their wages. They’re falling in real terms. They’re not paying the tax you thought.
People are suffering. That’s the reason.
Sajid Javid: No, I don’t accept that.
Having offered some platitudes to those facing “challenges”, he then tried to blame the Exchequer’s flatlining tax take entirely on income tax cuts.