It used to be the case that when the economy grew, the wages of most people grew at about the same rate. Since the 1990s this link has been broken and as the economy has grown, pay hasn’t kept up. And under the Tory led government, things have got worse. Real wages have been falling, even while the economy has recovered. Why is this? Well too many of the jobs being created in our economy are low paid and insecure. Every month in the last year, the new jobs created in our economy have actually dragged down average wages further.
But not everyone is getting worse off. Those at the top have seen their earnings increase. For example, the CEO of a FTSE 100 company can now expect to earn around 130 times more than their average employee. People who work hard and create jobs of course should be rewarded, but we don’t want to see rewards for failure. And when Britian does well, the reward should be shared by millions of working families, not just a few. A Labour government will act to tackle the cost of living crisis and ensure that when the economy grows, the wages of ordinary people rise at the same time.
Here’s how. We will create more high skilled, better paying jobs. We will do this by cutting taxes for Britain’s small businesses. Creating a British investment bank to ensure Businesses can get the finance they need to grow. By creating a million new, high skilled, well paid jobs for the future by investing in new green technologies like wind farms. And we’ll invest in the skills of the workforce with new apprenticeships and technical degrees.
At the same time, we want to tackle insecurity at work by banning exploitative, zero hours contracts and we want to give workers a say on how senior executives in their companies are rewarded.
Now we want to know what you think.
- Do you agree that raising living standards for everyone should be a priority for the next government?
- How else could we raise your living standards?
- Do you feel the recovery is benefiting you and your family?
Tell us what you think.