The TUC research says UK income per head – economic growth that takes account of population change – will not return to its pre-crash level until 2017.

By contrast, income per head in Germany and the US will be over 10% higher a decade on from the financial crisis, while South Asian economies are set to have growth of over 20%.

The TUC says the figures, which are based on the IMF’s latest GDP forecasts, reveal that the UK risks enduring a ‘lost decade of growth’, while many of its economic rivals forge ahead.

With the Chancellor identifying an economic ‘global race’ as the defining challenge for the government, the report shows how George Osborne’s own strategy is causing the UK to fall behind its competitors.

The study also reveals how the UK is emerging from recession at a slower rate than at any time in its recent history.

In 1985, UK income per head was six per cent higher than it was before the 1980 crash. In 1995, UK income per head was seven per cent higher than it was before the 1990 recession. UK income per head is today still six per cent below its 2008 level.

The Chancellor cannot blame Europe for the UK’s economic woes, as the vast majority of the eurozone’s countries are performing better, says the TUC.
George Osborne faces further embarrassment this week when he hosts a meeting of the G7 finance ministers on Friday. Only Italy is experiencing a slower recovery than the UK among G7 countries.