Give people a pay rise, Cameron tells businesses

Cameron makes it his business to tell people how to run theirs

It’s about time British workers got a pay rise, David Cameron will tell business leaders today.

Speaking at the British Chambers of Commerce, the prime minister will urge businesses to give their employees a bigger salary.

“Economic success can’t just be shown in the GDP figures or on the balance sheets of British businesses but in people’s pay packets and bank accounts and lifestyles,” Cameron will say.

“The most recent figures show that wages are already growing faster than inflation and as the economy continues to grow it’s important this continues and that everyone benefits.

“Put simply - it’s time Britain had a pay rise.”

However, workers shouldn’t get their hopes us as without actually making changes, such as raising the minimum wage or forcing employers to pay the living wage, it’s not clear whether the speech will actually have an impact on the ground.

TUC general secretary Frances Grady said the speech was “no more than pre-election mood music” that would be insulting to public sector workers.

“There are nurses, midwives and public sector midwives across the board who will find it a bit rich that the government is calling for a pay rise for everybody but them,” she said.

This comes as the TUC has calculated the average wage is worth £2,500 less a year than when Cameron came into power. From April 2010 to April 2014, average gross annual earnings of full-time employees in the UK decreased by 8.4 per cent.

“Since David Cameron became Prime Minister the average wage is worth £2,500 less a year, the worst fall in living standards since Queen Victoria was on the throne,” said Grady.

“Saying it would be nice if wages went up is no more than pre-election mood music. If elected again his policies would do the opposite. Huge cuts would take spending back to the same share of the economy as in the 1930s. This would depress the economy and mean public sector wages would fall every year. On top of that he would make strikes almost impossible, holding back pay across every sector.”


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Readers' comments (1)

  • Only someone out of touch with the really world of small business could ever say something like that We are faced with more and more costs, including workplace pensions, new paternity rights etc.

    Many small SME owners have struggled to survive, often taking home pay a lot less than their employees (if they take any at all).

    This Cameron at his most blisteringly stupid, companies are not all Banks and FT 100's.

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