Tag Archives: Labour

Labour analysis of Government figures shows:

· London and the South-East have accounted for almost half of all net jobs created in the UK since 2010, despite accounting for only a quarter of the population

· The rest of the country has lagged behind with just one net job in 200 created in the North East under the Conservatives.

Rebecca Long-Bailey MP, Labour’s Shadow Secretary for Business, Energy and Industrial Strategy, commenting, said:

“New figures show that seven years of failure under the Conservatives is holding most of this country back. Boasts about job creation will ring hollow when there are few jobs being created across most of the country and even then too many are poorly paid and insecure.

“The reality of Conservative failure is that with investment falling and real wages still lower than before the crash, but chief executive pay up 24% to over £5m since 2010, it’s the wealthy elite who are winning out in the Tories’ rigged economy. 

“Only Labour has the ambition needed to deliver investment across the whole country and create decent, well-paid jobs so that people in every part of our country can live richer lives.”

Labour analysis, using House of Common’s Library endorsed modelling, shows that:

Average real earnings are set to fall by £1,200 as a result of rising inflation and lower wage growth

At the Budget last month we saw inflation forecast up this year and average earnings forecasts lowered next year and for the next two years.

The combination of higher prices and lower wages is that living standards are set to be squeezed.

This time last year, at the Budget 2016, the OBR was forecasting real average earnings growth of 9 per cent between 2015 and 2020 (average earnings adjusted for CPI inflation). However, at this year’s Budget, this was revised down to growth of 5 per cent between 2015 and 2020.

Converting this to income values, Budget 2016 was forecasting that real average earnings would be almost £2,500 higher in 2020 than in 2015. However, at Budget 2017 this was revised down to £1,300. This is a difference of £1,200.

Today’s analysis comes on the back of IFS analysis last year which showed that the “outlook for living standards has deteriorated rather sharply”, describing the prospects for real earnings growth as “dreadful”.

The Resolution Foundation has also said that the “outlook for living standards in 21^st century Britain does not look promising” and that “weak and regressive nature of income growth in the years ahead should concern us all”. 

This analysis looks at the effect on living standards resulting from changes to OBR forecasts at this year’s Budget.

Tax and benefit changes, as well as previous OBR forecasts will impact on living standards; however, this analysis focuses just on inflation and earnings outlook.

John McDonnell MP, Labour’s Shadow Chancellor, commenting, said:

“Today’s analysis shows the impact of seven years of Tory economic failure.

“Living standards are being squeezed and working people are being hit hard. This is despite the Tories promising at the last General Election that they would raise living standards.

“The truth is that Theresa May has failed working people and the Tories are taking the country backwards. Labour would make different choices and stand up for ordinary working families.

“Only Labour will take the action needed to end the Tories’ economic failure by introducing a Real Living Wage of £10 an hour by 2020 and by investing in our regions and our local communities.”

Angela Rayner MP, Labour’s Shadow Education Secretary, responding to a Teach First report that claims the country’s poorest parents have half the chance of getting their child into an outstanding primary school, compared to the richest ones, said:

“This is just the latest evidence that the Government’s rhetoric on social mobility has not been matched by results. 

“Theresa May’s only answer to the social mobility crisis is her discredited policy of new grammar schools, which by definition ignores the crucial early years of a child’s life and does nothing to ensure all children go to a good primary school.

“It is clear that the Tories do not have the answers to the serious issues facing our schools, such as the crisis in recruitment and retention, super-size classes, and the unprecedented squeeze in school budgets.”

Employees in small businesses earned less than previously thought between 2010 and 2015

 Analysis of government figures shows:

·         Methodological revisions to the Average Weekly Earnings of employees in small businesses shows a downgrade in level of earnings between 2010 and 2015

·         The Government’s mishandling of the economy and mistreatment of small businesses has resulted in pay for employees being less than thought

·         Between 2010 and 2015, the average revision downwards in the level of weekly earnings was 1.7 percent. This amounts to more than £2,000 over that period less than previously thought,.

Rebecca Long-Bailey MP, Labour’s Shadow Secretary for Business, Energy and Industrial Strategy, said:

“The latest revision to the methodology for calculating earnings for employees in small businesses shows that the level of earnings was less than previously thought during the period 2010 to 2015.

“Added up, between July 2010 to December 2015, earnings for the average employee in a small business were in fact over £2,000 less than previously thought.  This is a further indictment of the Conservative’s already terrible record of protecting the living standards of people in this country and their failure to recognise the experiences and requirements of small businesses.”

John McDonnell MP, Labour’s Shadow Chancellor, has today written to the Chancellor, Philip Hammond MP, to demand the opening of a public inquiry into the scandal of Libor interest-rate rigging.

Interest rate rigging could have cost the public billions and public bodies affected are due compensation

New evidence uncovered by the BBC Panorama programme points to collusion between senior figures at the Bank of England and major banks to rig the critical “Libor” interest rate that trillions of pounds of financial products depend on.

And court transcripts, shown below, from the recent trial of bank staff accused of rigging Libor also show that the rigging of this crucial interest rate was known to regulators and Bank of England staff at least as far back as August 2005.

But with small businesses and public bodies dependent on loans and more complex financial products linked to the value of Libor, efforts to rig the interest rate could have cost the public billions. Schools, NHS hospitals and local authorities are all amongst those likely to be affected, particularly where they had been sold more complex Libor-linked financial derivatives.

The Shadow Chancellor is asking for an immediate public inquiry into the rigging to establish who took the decision to apply this pressure, who was involved in its implementation, who was aware that this was taking place, and whether any impact assessment was undertaken at any point.

This is essential in establishing the scale of compensation due to public bodies from banks engaged in Libor rigging.

John McDonnell MP, Labour’s Shadow Chancellor, said:

“The revelations this week of the possible pressure being applied by senior public officials on banks to rig one of the world’s most important financial metrics demand an immediate response from this government. Continuing official silence from the Chancellor is not acceptable when confronted with this scale of rigging.

“It is essential that we clarify who took the decisions to rig the Libor index, and when, so that the schools, NHS hospitals and local councils that lost out can be paid the compensation that is rightfully due and public confidence in our banking system and official institutions can be restored.”