Unions demand end of pay cap as inflation rises
JOHN McDONNELL called on the Tories step aside and make way for a Labour government to rebuild the economy after figures yesterday showed inflation has hit a four-year high.
The shadow chancellor warned that the country “cannot afford more of the same from Theresa May and her party,” as union leaders called for an end to the public-sector pay freeze that has seen wages fall far behind living costs.
GMB general secretary Tim Roache urged the Prime Minister to learn from her “election embarrassment” and said the Tories’ economic credibility “lies in tatters.”
And Unison general secretary Dave Prentis warned that the soaring cost of living was hitting public-sector workers hardest as he called for an end to the pay cap.
The Office for National Statistics reported that inflation rose to 2.9 per cent in May, up from 2.7 per cent in April. Economists said that inflation won’t peak until later in the year.
Wage growth stood at just 2.1 per cent in March.
OECD analysis revealed last week that British workers face a 1.1 per cent drop in real wages in 2018, the biggest fall in any advanced economy.
TUC general secretary Frances O’Grady said whoever forms the next government must “stop the real wage slide … and focus on delivering better paid jobs all around the UK.”