The latest ONS figures show regular pay fell by 1.2% in January to March 2022. Liberal Democrat Treasury Spokesperson Christine Jardine MP said: “These figures confirm families are facing a cost of living nightmare, with wages failing to keep up with soaring energy bills and food prices.
“It is the worst possible time to be raising taxes on struggling families, yet still the Chancellor is ploughing ahead.
“Rishi Sunak has cashed in billions of pounds in extra VAT receipts this year as prices go through the roof. He needs to put some of this money back into people’s pockets through an emergency tax cut, instead of cashing in on their misery.
“Slashing VAT would cut prices, reduce inflation and boost spending, it should be a no brainer.”
The full ONS statistics are available here.