The Government announced that Public-sector pay rises are set to remain below inflation until price rises come under control, with the International Monetary Fund (IMF) warning against easing off in the fight against inflation and Bank of England governor Andrew Bailey suggesting policymakers will continue to keep interest rates high.
The IMF said the UK is likely to have a larger increase in public debt than some other large economies because it is "contemplating further increases in public wages and other social spending". It added that the impact of government wage hikes on private wages and consumer price inflation "are significantly larger and longer-lasting when labour markets are tighter".
Meanwhile, Treasury officials have warned Chancellor Jeremy Hunt that there is a danger of a wage-price spiral, with high public-sector pay sparking wage inflation in the private sector.
Trade Union, Labour and Co-operative Party members have spoken out about the damaging effect of families and businesses outside of the capital suffering when so many people are having to shoulder the blame for the Conservative Governments mismanagement of the economy.
The mess is currently being highlighted with headlines outlining the waste by Matt Hancock’s department who couldn’t specify the PPE the nation required correctly topping £3.7Bn with over £1Bn of plastic goods burned with the residue damaging the environment, the PM being ferried around the country in planes and helicopters when the same Government are preaching that people need to get rid of their private cars and buy bikes shows just how distant the Conservatives at all levels are from the reality on the ground which affects public sector workers badly.
Without the support of public sector workers the Conservatives will fare badly at the forthcoming local government elections next month even with their democratically damaging ID scheme in place.
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