Britain is enduring its longest wage squeeze since Napoleonic times, with the shadow of austerity shaping a decade of economic struggle. Despite GDP showing growth and the stock market soaring to new all-time highs, real wages have failed to keep pace with the cost of living. This has led to Britain experiencing a 'stealth recession' where the average worker feels increasingly restricted despite wider economic growth. The true extent of this unprecedented pay squeeze is captured by the Trades Union Congress (TUC), highlighting that this is the longest period of wage stagnation in more than 200 years.

At the heart of Britain's economic woes lies a productivity decline, with annual productivity growth falling to just a 10th of its levels before the financial crisis. This has been exacerbated by an investment drought, with the UK lagging behind its peers. Consequently, a combination of stagnant productivity, Brexit uncertainties, and global shocks has created a perfect storm that continues to batter Britain.