Mark Langabeer (Hastings and Rye Labour member) watched the recent BBC1 Panorama broadcast (watch here).
BBC reporter Ros Atkins asked why are there so many people feeling poorer. Millions are struggling because their wages are not keeping pace with inflation.
Atkins travelled to Cornwall, the county he grew up in, which has some of the lowest pay rates in the UK. He interviewed a district nurse who earns just under £24,000. He enjoys his work but his pay has been eaten up by rising bills. The Nuffield Trust state that nurses pay has fallen by 10% in real terms.
The Tories argue that a cost-of-living rise would result in an inflationary spiral and claim our woes are caused by Covid and the conflict in Ukraine. Panorama stated that it’s low productivity that has caused pay rates to stagnate. The Resolution Foundation pointed out that the average wage has only increased by £500 since 2010. In Germany pay has risen by over £4000. Productivity is largely driven by investment.
Long-term plan
Atkins interviewed an economist who stated that a long-term plan is needed. However, no explanation of the plan was forthcoming. In a market economy, investment depends on profitability. I recall when London Buses was privatised. The new employer (Stagecoach) described the area that I worked in as a bad company because it didn’t make large profits. Pay or service provision never even entered their heads.
A survey stated that 44% believed that their standard of living had fallen. Inequality has had a disproportionate effect on those on the lowest incomes because inflation is highest on basics such as energy and food prices. A survey suggests that the bottom 20% of income earners in France and Germany are significantly better off than those in Britain.
It’s my view that Labour needs a leadership that’s prepared to drive up productivity through a public works programme that prioritises social need, rather than private profit.
