Give everyone an extra month's wage

What a brilliant idea! And actually very sensible and workable.

It sometimes seems right-wing commentators are better able to see the big picture than some of us on the left and to advocate the really radical and necessary measures required.

Giving everyone an extra month's pay would increase the total wages bill in the economy from around £740 billion to £802bn, an additional £62bn. The share of wages in the economy would rise from 53 per cent to 57 per cent.

This actually feels quite a modest proposal yet would have the advantage of being extremely popular, and would appeal directly to every working person in the country - far more than £10,000 tax bands or 10p tax rates.

It would pump a significant amount of money directly into raising everyone's living standards, growing the economy on the basis of increasing working people's spending power.

Differentials between workers on different grades would be protected and incentives to work preserved.

In terms of how to pay for this modest measure, well £62bn is a fraction of the £375bn sum "created electronically" by the Bank of England as quantitative easing, which has so far failed to make any impact on the real economy.

Alternatively, increasing the share of GDP going to wages by 4 per cent at the expense of capital would for many be a price very worthwhile paying.

Andrew Northall

Kettering