Counter inflation with profit restraint and pay rises – not rate rises, says TUC

Commenting on today’s announcement to raise interest rates by 0.5%, TUC head of economics Kate Bell said:

“Working people need an approach to inflation that protects jobs and that helps pay keep up with prices.

“But a rate rise does nothing about the current causes of inflation – global energy, commodity and food prices. It will only add to our problems, making a recession very likely and putting lots of people’s jobs at risk.

“Businesses had tremendous support from taxpayers during the pandemic. They should now help to counter inflation with greater profit restraint – especially energy firms.

“And the government must do more to get pay rising, starting with decent pay rises for public servants, a higher minimum wage, and stronger rights for working people and their unions to bargain for fair pay.”