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Depreciation of the Pound: Disposable Income

Volume 622: debated on Tuesday 28 February 2017

17. Whether his Department has made an assessment of the effect of the depreciation of the pound on levels of disposable income. (908964)

I am pleased to say that the Government are taking action to support the level of real disposable income per head, which is forecast to be 2.8% higher by 2021 than it was in 2016.

There can be few things more tragic than a Treasury in denial. As sure as night follows day, the collapse of the pound will lead to higher prices, particularly for food and household technology, so when will the Minister’s Department get its head out of the sand and bring forward proposals to boost disposable income, to help people to meet these rising costs?

Average earnings growth has now outstripped inflation for 27 consecutive months, and the Office for Budget Responsibility has forecast that real disposable income will be 2.8% higher in 2021 than it was in 2016.

Recent Office for National Statistics figures show that exports have grown and imports have fallen. Is that not good for jobs, the economy, and employment?