THE squeeze on household incomes looks set to continue after the Bank of England announced that it had cut its expectations of growth for this year and next.
The Bank lowered its forecasts for growth for the year ahead to 1.7 per cent, down from 1.9 per cent, amid warnings of a “sluggish” economy, with real wages (their buying power) at their weakest since the middle of the 19th century.
Shadow chief secretary to the treasury Peter Dowd said: “There is no hiding from the truth. The Tories’ failed austerity agenda is holding Britain back and is a threat to working households.”
TUC general secretary Frances O’Grady said: “With businesses reluctant to invest, the government must step up to the plate with a plan to boost investment and to get wages rising again.
“They should start by scrapping the unfair pay restrictions on public servants that are leaving them thousands of pounds worse off. And they must boost the minimum wage to £10 as soon as possible.”