Workers 'facing difficult conditions in 2011'

Posted by Craig Williams

Rising inflation and the VAT increase will make 2011 a particularly tough year for British workers, according to Brendan Barber.

Commenting on the inflation figures published this week, the TUC general secretary said prices are "running well ahead of pay deals" for employees in the UK.

Mr Barber also discussed the VAT hike, describing it as "bad for working families and damaging for the economy too".

The expert suggested that public servants would be hit particularly badly after their recent pay cut.

Price hikes in petrol, food and air transport are among the most significant drivers to the increase in inflation, according to a report from the Office for National Statistics.

The report said Consumer Price Index annual inflation is currently 3.7 per cent, an increase of 0.4 since November.

VAT, the tax on most goods and services, was changed from 17.5 per cent to 20 per cent this January.
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21/01/2011 11:54

News category: Employment

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