Osborne’s deficit strategy failing because of wages decline, says TUC

Responding to Office for National Statistics data published today (Tuesday), showing the deficit growing because wages and income tax receipts are stagnating, TUC General Secretary Frances O’Grady said:

“It’s time for George Osborne to admit he got his strategy wrong. Today’s figures show the deficit getting bigger as tax revenues dry up.

“The 90,000 people who marched through the streets of London on Saturday calling for a pay rise understand that it’s not just British workers who need wages to go up, but that’s what the Treasury and the economy needs too.

“Only a wages-led recovery can bring about the boost in demand that businesses need and the boost in revenue that the government needs to cut the deficit and invest for the future.”

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

- On Saturday 18 October the TUC is organising Britain Needs a Pay Rise – a national march and rally in London to call for an economic recovery that delivers for everyone, and for fair wages to help end the living standards squeeze. For more information on the campaign go to www.tuc.org.uk/economic-issues/britain-needs-pay-rise