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Budget leaves UK capital investment trailing our
competitors
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Wages and productivity likely to remain weak while
under-investment continues, says TUC
TUC analysis of official figures published for today’s
(Wednesday) budget shows that wages are now set to be worth £800
less per year in 2021 than had been expected at the budget in
March.
The TUC warns that investment measures in today’s budget
are far below what is needed to boost growth, get wages rising,
and get Britain fit for Brexit.
Capital investment is set to peak at 2.9% GDP, and average
2.8% GDP, across the current parliament to 2022. This will leave
if far short of the OECD average of 3.5% GDP.
On wages, TUC General
Secretary Frances O’Grady said:
“The news for workers gets worse and worse. Their wages are
set to be worth hundreds of pounds less than the government
thought in the coming years. This budget won’t give Britain the
pay rise it so badly needs.”
On investment, she added:
“The Chancellor’s job today was to get Britain’s economy
fit for Brexit. But what he announced falls far short of the
investment boost the economy needs. And it leaves us trailing our
competitors.
“The government must urgently up its game, or life outside
of the EU will be a rough ride for working people. Investment
must be targeted at the big sectors of the future, like
low-carbon industry. And it must be directed towards communities
that are most in need of more and better
jobs.”
On changes to Universal Credit, she
added:
“Making people wait less for Universal Credit is a small
step forward, but big changes are needed or working people will
be left thousands of pounds a year worse off. If the Chancellor
can afford tax cuts for big business, he can afford to help
working families.”
