THE Government must forget its positive spin over UK growth and concentrate on falling pay and living standards, it has been claimed.

Latest figures revealed the UK economy is now 2.7 per cent bigger than at its pre-recession peak, with gross domestic product (GDP) growing 0.9 per cent in the second quarter of the year.

Prime Minister David Cameron tweeted his delight at the statistics, saying it would lead to “more opportunities for hardworking taxpayers.”

However, the Coalition has been attacked for failing to adequately tackle North-East unemployment, with claims the recovery is the slowest since the Second World War.

Iain Wright, Hartlepool MP and Shadow Minister of State for Industry, said: “David Cameron and George Osborne claim recovery is strong, but it certainly doesn't feel like that for millions of hard-pressed workers.

“They are seeing their quality of life reduce under this Government and in the North-East we certainly don't feel economic recovery, when unemployment remains the highest in the country.

“Any economic growth is not translating to higher wages.

Beth Farhat, Northern TUC regional secretary, said people needed a fair share of the growing economy.

She added: “These figures show the UK’s living standards crisis is worse than originally thought, and while the size of the economy has been revised up, household incomes have been revised down.

“This is set to be the first full Parliament since the Second World War when the Government leaves office with people’s pay packets worth less than when they came into power.

“There is something deeply wrong when the economy is growing, but the people who do all the work face ever shrinking pay and falling living standards.”