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Economic Developmentopinion

What does the Budget really tell us?

Despite the Chancellor's claims, incomes for the vast majority of the population are in fact still below the level they were at in 2010, argues Steven McCabe

George Osborne(Image: Darren Staples/PA Wire)

Watching budget statements is always frustrating and last week's was especially so. Macroeconomic data suggests things are getting better.

That the º£½ÇÊÓÆµ economy grew at 2.6 per cent in 2014 is good news; especially given that this is faster than other advanced economies.

George Osborne claimed the economy would continue to grow at 2.5 per cent in 2015 followed by 2.3 per cent, 2.3 per cent, 2.3 per cent and 2.4 per cent in the next four years.

Inflation is falling and for the foreseeable future. Employment is increasing and, by implication, unemployment is decreasing.

Osborne claimed the critical choice we all faced was whether we stuck with the current plan that he, unsurprisingly, believed was achieving success or to return to what he called "chaos".

Crucially, using selected measures, Osborne claimed living standards were better now than they were in 2010 when the coalition came to power.

The experience of those who I talk to suggests this is not the case.

This perception is backed up by research carried out by the Resolution Foundation which states its belief that incomes for the vast majority of the population are in fact still below the level they were at in 2010.