Starmer is warned that public sector pay rises will drive up inflation
5 months ago

Starmer is warned that public sector pay rises will drive up inflation

The Telegraph  

Minimum wage woes Significant rises are also expected to the national living wage, which already jumped by 9.8pc this year under the Conservatives. If you were to spread it over a parliament, I don’t think it will have any real effect on the Bank’s rate decisions in the near-term.” At its interest rate meeting in June, the Bank’s Monetary Policy Committee noted that “some recent data suggested a risk that near-term pay growth could moderate by less than had been expected”. “There remained a risk that there had been a more enduring shift in price and wage-setting behaviour,” said the policymakers, led by Andrew Bailey, the Bank’s Governor. A government spokesman said: “We value the vital contribution the almost 6m public sector workers make to our country. We will update in due course; however we are under no illusions about the scale of the fiscal inheritance we face.” Separately on Tuesday, EY’s ITEM Club said it expected the Bank to cut rates in September rather than August, but noted that the potential for higher government spending could affect the MPC’s decisions.

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History of this topic

Starmer faces wave of strikes as union discontent spreads over pay rise caps
1 week, 5 days ago

Starmer faces wave of strikes as union discontent spreads over pay rise caps

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The Fire Brigades Union general secretary Matt Wrack, a former Trades Union Congress president, has …

Reeves to hand workers pay rises of more than triple rate of inflation
1 month, 3 weeks ago

Reeves to hand workers pay rises of more than triple rate of inflation

The Telegraph  

Tina McKenzie, of the Federation of Small Businesses, said: “Any increase to the NLW must be accompanied with powerful government measures to help small businesses create and sustain jobs. Almost four in five of small business employers say the Employment Allowance should rise in line with the NLW every year.” Ms Reeves decision to raise the minimum wage will be …

Rate cut hopes lift on slowdown in UK wage growth
2 months, 1 week ago

Rate cut hopes lift on slowdown in UK wage growth

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “A 25 basis point November Bank Rate cut is …

Slowdown in wage growth ‘clears the path for more interest rate cuts’ by BoE this year
4 months, 1 week ago

Slowdown in wage growth ‘clears the path for more interest rate cuts’ by BoE this year

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. “This lends some support to our forecast that the Bank …

Sir Keir Starmer warned he risks stoking inflation if he hands millions of public sector workers inflation-busting pay rises of 5.5% while increasing the minimum wage
5 months ago

Sir Keir Starmer warned he risks stoking inflation if he hands millions of public sector workers inflation-busting pay rises of 5.5% while increasing the minimum wage

Daily Mail  

Sir Keir Starmer risks stoking inflation if he hands millions of public sector workers inflation-busting pay hikes while increasing the minimum wage, economists warned yesterday. But experts warned that bumper hikes could trigger higher pay demands in the private sector and spark a wage-price spiral, in turn driving up inflation. Sir Keir Starmer risks stoking inflation if he hands millions …

How the Bank of England’s rate rises lost their power
9 months, 1 week ago

How the Bank of England’s rate rises lost their power

The Telegraph  

Services costs are rising rapidly everywhere you look: care home fees are up by one-tenth. Ian Stewart, chief economist at Deloitte, notes that households had a big pile of savings built up during Covid that let them keep spending even as prices rose. Catherine Mann, an MPC member, told a recent Financial Times conference that “a lack of consumer discipline” …

Bank of England expected to hike interest rates after record wage rise
1 year, 4 months ago

Bank of England expected to hike interest rates after record wage rise

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Wage growth means the Bank …

Inflation now driven by demands for higher wages, warn businesses
1 year, 5 months ago

Inflation now driven by demands for higher wages, warn businesses

The Telegraph  

Inflation is now being driven by higher wages as companies pass on rising salary costs to their customers, bosses have warned. The economy is slowing sharply, with the manufacturing sector shrinking and the dominant services industries running out of steam, according to the purchasing managers’ index, an influential survey from S&P Global. Price rises are slowing from last year’s highs …

Andrew Bailey blames high wages for causing inflation
1 year, 6 months ago

Andrew Bailey blames high wages for causing inflation

The Telegraph  

Andrew Bailey has blamed “unsustainable” pay rises for stoking inflation as the Bank of England lifted interest rates to 5pc in an attempt to tame rampant price growth. Speaking after Threadneedle Street announced a larger-than-expected increase in rates of 0.5 percentage points, the Governor warned that pay “cannot continue” going up at its current pace if inflation is to fall. …

UK strikes hit a 30-year high as inflation erodes pay
1 year, 10 months ago

UK strikes hit a 30-year high as inflation erodes pay

CNN  

London CNN — The United Kingdom lost more working days to strikes in 2022 than in any year since 1989, as employees walked out in large numbers over pay amid soaring living costs. Real pay falls The UK government has so far refused to grant public sector workers higher pay awards, arguing that doing so risks making the inflation problem …

Wage debates and inflation are just the tip of what business want the new government to tackle
2 years, 7 months ago

Wage debates and inflation are just the tip of what business want the new government to tackle

ABC  

As parliament welcomes some new suits, Luke Williams is busy cleaning them. But just like new Prime Minister Anthony Albanese, Luke Williams supports rising the minimum wage by 5.1 per cent in line with inflation. "It's certainly becoming a more challenging economic environment as the new government takes power." The first challenge facing Albanese is to restore Australia's economy Photo …

More substantial minimum wage increase set for next year: Report
2 years, 7 months ago

More substantial minimum wage increase set for next year: Report

NL Times  

The minimum wage will rise more quickly than the Cabinet previously announced as part of an effort to improve purchasing power of people in lower income categories, broadcaster NOS reported. The four political parties which joined together to form the Cabinet previously agreed to increasing the minimum wage in 2024 and in 2025 by a combined total of 7.5 percent. …

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