Research by the price comparison website uSwitch.com found that disposable income - the money left over after taxes, mortgage/rent payments and household bills - has fallen to just 32.6 per cent of gross income, compared with 34.5 per cent in 1997.
The biggest increases in household costs, apart from house prices, were income tax, national insurance and council tax. It cannot be clearer - higher taxes mean lower disposable income. It's time for politicians of all parties to realise that the best way to boost families' spending power is to cut the overall burden of tax.