Rolling coverage of the latest economic and financial news
- Introduction: UK borrowed £22.3bn last month, an October record
- UK borrowed £215bn since April – a record
- National debt now 100.8% of GDP, not seen since the early 1960s
- Rishi Sunak to put squeeze on public sector salaries
When we talk about sustainable public finances, it’s important to remember that Britain’s borrowing costs are currently remarkably low.
This morning, 10-year UK gilts are trading at a yield of 0.32% in the bond markets (you can see prices here).
Usual reminder that the UK govt can borrow at low rates and extra borrowing is vital to avert a slump https://t.co/XZHM7kEk1h
Another thing. If we see wages as merely a cost, we miss the role of wages as a source of demand. This is notwithstanding the moral case for wage rises https://t.co/rvH84terpD
The TUC are also opposed to any public sector pay freeze, with general secretary Frances O’Grady saying:
“A pay freeze would be a bitter pill for care workers, refuse collectors, emergency workers and all the key workers in the public sector who have helped keep the country going through this pandemic.
“Freezing their pay is no way to reward key workers for their service. Unions will fight for the proper pay rise they have earned.
Freezing the pay of millions of key workers is no way to reward their service. The very least they deserve for getting us through this crisis is a proper pay rise. https://t.co/3bsR6g5OaW
