A member of the UK200Group comments on news that UK average earnings are growing
A member of the UK200Group of independent accountancy and law firms has today commented on news that UK average earnings have been growing at the fastest rate since 2009.
According to Office for National Statistics (ONS) estimates, average earnings (excluding bonuses) grew by 2.9% between May and July, compared with the same period last year. Meanwhile, private sector pay rose by 3.7%.
Duncan Montgomery, tax partner at UK200Group member firm Whittingham Riddell LLP, said:
With inflation down, these rises in wages represent a real increase in the standard of living for working people, which hopefully will translate to additional economic activity. The key for many is the interest rate, with any movement in the interest rate potentially wiping out this increase fairly swiftly for those with mortgages. Business needs both to be alert to the needs of staff and their own borrowing position, particularly in the run up to February.