Squeeze on incomes will weaken recovery, TUC warns
More than 5 million public sector workers, including those in health care, civil service and local authorities, will be hit by both a freeze on pay and April tax rises, the Trades Union Congress said yesterday. This loss in earning power will damage the economy as well as hitting the pockets of those directly effected. 'It will increase the anger and frustration already apparent in many parts of the public sector,' the TUC says.
The union figures assume a zero increase in pay together with a loss of 2.75p in the pound as a result of tax increases contained in last year's two Budgets and a loss of 3.25p because of inflation, based on Treasury estimates. John Monks, general secretary of the TUC, said public sector capital spending had decreased by pounds 600m despite government claims that last year's 1.5 per cent pay policy was necessary to preserve such expenditure.
In 1992 the then Chancellor, Norman Lamont, told the Treasury Select Committee: 'Although we are acting on public sector salaries, we have done this in order to preserve capital projects.'
The Government's own 'Red Book' table on public sector asset creation, the Treasury's widest measure of capital spending, showed a decline from pounds 29.1bn in 1991-92 to pounds 28.5bn in 1992-93.
Mr Monks said that the figures demonstrated the injustice of government strategy. 'Millions of workers are being asked to take a real and serious cut in their standard of living. They were told last year that the pay policy was for the good of services in which they work. The truth is that both jobs and services are being cut and the victims are the public, as well as those who work for them.'
- 1 Video shows how to turn your phone into a 3D hologram
- 2 Artist Jamie McCartney: How The Great Wall of Vagina is a stand against 'body fascism'
- 3 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Michael B Jordan and Kate Mara handle excruciatingly awkward and offensive interview questions like pros
RideLondon 2015: Cyclist dies while climbing highest hill in Surrey during sportive
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
Tensions flare as Confederate flag supporter reaches for gun when confronted by protests – in pictures
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Tom Cruise: Reporters banned from asking actor about Scientology
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Jeremy Corbyn's anti-austerity agenda will harm poor, says Labour shadow Chancellor Chris Leslie
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...
£18000 - £20000 per annum: Recruitment Genius: A Production Planner is require...
£20000 - £24000 per annum: Ashdown Group: IT Support Analyst vacancy with a we...
£30000 - £40000 per annum: Recruitment Genius: This is a fantastic and interes...