PHILIP Hammond hit back at gloomy forecasts for 20 years of economic misery yesterday — and called on the country to prove the doomsayers wrong.
The Chancellor spoke out after experts warned workers to expect another lost decade of wage rises and the longest cost of living squeeze since the 1950s.
Reuters Philip Hammond has hit out at predictions of a gloomy economy for Britain over the next 20 years
The Institute for Fiscal Studies said wages will not return to their pre-financial crisis levels until 2025 with the nation’s debt mountain not falling to its 2007 level until the 2060s.
The analysis came after the Treasury watchdog cut its growth forecasts for the next five years amid lower than expected productivity and uncertainty.
The Office for Budget Responsibility expects GDP — which measures the health of the economy — to grow by an average of just 1.4 per cent a year between now and 2022.
The boss of the IFS think tank Paul Johnson said: “We are in danger of losing not just one but getting on for two decades of earnings growth.”
Paul Johnson, director of the Institute for Fiscal Studies warned of losing two decades of earnings growth