Shropshire workers could see take-home pay plummet almost £1,000 in 2023 - report
Workers in Shropshire could see a 'sharp squeeze' to their wages with a net reduction of almost £1,000 by 2023, new figures have shown.
Data from the Office for National Statistics has revealed there will be a staggering hit to wages facing people in the county by next year.
It comes as the cost of living continues to increase, with working people facing the biggest tax burden since the 1940s.
According to the OBR's economic forecast, CPI (consumer price inflation), is predicted to peak at close to nine per cent in the fourth quarter of this year.
This would be the highest level of consumer price inflation in approximately 40 years, since the late 1970s into the early 1980s.
Rising inflation, combined with net tax increases starting in April, will weigh down on living standards and real household disposable incomes over the next couple of years.
New analysis has shown that the average earner in Telford & Wrekin, will see their real earnings drop by £893.48 by 2023 and the average earner in Shropshire will see their real earnings fall by £988.33.
Gwilym Butler, Shropshire Council’s cabinet member for finance and corporate resources, said: “We know that this is a worrying time for everyone as the cost of living continues to increase.
“You’re not alone. We’re working with many organisations to make sure there’s a range of help and advice available both from the council and many other organisations here in Shropshire.
“If you haven’t already, please also make sure that you set up a Direct Debit to pay your council tax. This will ensure that you get your £150 rebate towards energy bills as quickly as possible.”
Councillor Richard Overton, deputy leader and cabinet member for housing, enforcement and transport, has called out the Chancellor for making 'wrong choices' in the Spring statement.
The Telford & Wrekin Labour councillor said: “The cost of living crisis is hammering families in Telford & Wrekin.
"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 Telford & Wrekin are facing a sharp squeeze on their wages, losing £893.48 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.
“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 Telford & Wrekin, and our country.”