Chancellor must strengthen growth and wages at Spring Statement, says TUC

The TUC has today (Monday) published a report outlining the action needed by the Chancellor in his Spring Statement on Tuesday.

The report highlights:

• Weak UK growth – over the year to 2017(Q4), UK growth was 1.4 per cent, the weakest growth of all G7 nations.
• Falling real wages – in 2017 real wages fell for the seventh time in the nine years since the financial crisis.
• Falling investment in public services – spending per person on schools, hospitals, local government and other public services will be down by £940 in 2022/23 compared its level in 2010/11.
• Weak investment in infrastructure – UK public capital investment will peak at just 2.9% of GDP in the current parliament, compared to the OECD average of 3.5%.

The TUC is calling on the Chancellor to invest in public services – including public sector pay – and upgrade the UK economy with infrastructure investment targeted through a National Investment Bank.

TUC General Secretary Frances O’Grady said:

“The government is paying too little attention to major problems in the economy.

“Ministers are standing by while wages fall and services like schools and hospitals are starved of cash. And low investment has left many communities without the modern infrastructure they need to attract new businesses and create better-quality jobs.

“The Chancellor should not wait until the autumn budget to act. We need urgent action to strengthen the economy and get wages rising. He must boost public sector pay and invest in our schools and hospitals. And he should set up a National Investment Bank to bring opportunities to parts of Britain where good jobs are in short supply.”