Analysis: Boris Johnson Still Wants A High Wage Economy … But Not Yet

At the Conservative Party Conference last October, Boris Johnson was unequivocal.

“We are now embarking on a change of direction that was long overdue in the UK economy – we are not going back to the same old broken model of low wages, low growth, low skills and low productivity – all made possible and fueled by uncontrolled immigration,” he said he.

The Prime Minister said the UK was instead “moving towards an economy with high wages, high skills, high productivity and – yes – a low-tax economy”.

This morning Downing Street urged private sector employers to “respect” rising inflation when it comes to giving pay rises to their staff.

Johnson’s spokesman said: “We see a global challenge right now, particularly around inflation, and we need to avoid anything as a country that would further fuel inflationary pressures.”

When asked if pay was one of those factors, he said, “Certainly, salary increases could be one of the areas that could be detrimental.”

His comments came after Treasury Secretary Simon Clarke used his broadcast media this morning to warn public sector workers to expect a real pay cut.

“In the current inflation landscape of 9% bordering on 10%, it’s not a sustainable expectation that inflation can be equated in the payout,” Clarke said.

“We can’t get into a world where we’re chasing inflation expectations in this way because that’s the surest way I can think of to bake a repeat of the 1970s that this administration is dying to prevent.”

Asked when wage increases could match inflation, the Prime Minister’s spokesman said: “I wouldn’t put a timeframe on it.”

So apparently Boris Johnson still wants a high-wage economy – but not yet. Analysis: Boris Johnson Still Wants A High Wage Economy … But Not Yet

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