GDP: Chancellor must boost pay to get us out of the economic doom loop

Commenting on today’s (Friday) publication of GDP data, which shows zero growth in the fourth quarter of 2022, TUC General Secretary Paul Nowak said:

"Our flatlining economy is a problem made in Downing Street. By holding down pay, the Conservative government is holding back economic growth. It forces families to cut their spending. And it means that businesses have fewer customers.

“The Chancellor and Prime Minister must get us out of this doom loop. They must put pay rises at the heart of next month’s budget. It’s the fuel in the tank that our economy needs to get moving again.”

The TUC’s budget submission called on the government to boost pay, deliver plans for strong public services and fair taxation, and protect families from the cost of living emergency. Specific recommendations include:

• Fund decent pay rises so that all public service workers get a real-terms pay rise
• Get the UK on a path to a £15 minimum wage as soon as possible
• Ensure those with the broadest shoulders pay their fair share in tax – including a higher windfall tax on oil and gas giants like Shell and BP
• Cancel the imminent hike in energy bills by keeping the Energy Price Guarantee no higher than £2,500

The full set of recommendations is here: https://www.tuc.org.uk/research-analysis/reports/spring-budget-2023