Twenty years ago, a single manual worker on half the average earnings would, if they lost their job, get from the state 30 per cent of their previous wages to keep them afloat while they looked for new work. Today, this has fallen to just 21 per cent. Yet during this period, no chancellor has stood up on Budget day to announce a cut in unemployment benefits.
And 20 years ago, a well-to-do married man on twice the average earnings handed over just under a quarter of his income in tax and National Insurance. Today he pays nearly a third. Yet no chancellor has stood up (not since Denis Healey in 1975) to announce a rise in income tax rates; indeed, the headline basic rate has fallen from 25 per cent in 1988 to 20 per cent today.
Subscribe to The New Statesman today from only £8.99 per month
Content from our partners
