Keep Prices Down and Do Not Ask for Pay Rises
Published / Last Updated on 23/02/2022
Bank of England Governor, Andrew Bailey has caused controversy again by asking businesses not to out their prices up as it risks making inflation more permanent and long term than holding prices for now.
Businesses are under increasing pressure will fuel and power prices increasing as well as business rate rises, social security/national insurance Health & Social Care levies, pension contributions, suppliers increasing their rates in addition to employees wanting pay rises to also cope.
Employees are also under pressure with the same food, council tax, fuel and power increases as well as new Health & Social Care levies.
Mr Bailey was already in for criticism by asking workers not to demand pay rises to try and control inflation, yet bankers will no doubt get their bonuses, income tax payments are rising as allowances are frozen until 2026 as well as councils hiking council tax bills. It would appear local and central government and public workers can demand rises but the non-government worker or consumer should not.
Added now will be the 'back lash' from businesses with ever increasing costs and demands but now being asked not to increase prices whilst everybody is.
Comment
We have experience of Mr Bailey when he was head of the Financial Conduct Authority. We make no further comment.