Britain loses out over wages

Between 2007 and 2011 real-term wages fell by 4.5 per cent. The bulk of this decline - 3.5 per cent - occurred in 2011, the coalition's first full year in office.

British workers' wages plummeted at nearly twice the rate of those in Spain - the next worst-performing economy that year - which fell by 1.9 per cent.

By contrast, wages in Australia and Canada rose by 6.9 per cent and 5.4 per cent respectively. The TUC said the figures highlighted the extent to which the recession and subsequent economic stagnation has squeezed the incomes of ordinary workers.

Recent TUC analysis has found that Britain is also lagging behind on exports, GDP growth and manufacturing.

TUC general secretary Frances O'Grady condemned the government's "blind obedience to self-defeating austerity" which she said had ensured that Britain "was leading the way when it comes to the squeeze on living standards.

"Businesses desperately need people to spend money but employees are cutting back as their wages are squeezed."

Ms O'Grady warned that unless Britist workers' real wages increased customer spending "will remain weak and the economy will continue to flat-line."