Swindon & Wiltshire Business News

Swindon's economy could take £6 million hit due to key worker pay cuts

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Swindon's economy could take a six-and-a-half million pound hit as a result of government plans to cut pay rises for key workers in the public sector, according to trade unionists.

Analysis published by the Trades Union Congress on Friday (February 5) says workers in Swindon are set to lose £6.4 million following announcements made by chancellor Rishi Sunak in November 2020.

It also means thousands of key workers who kept the country going through the pandemic will see a direct hit in their pay.

The analysis has calculated the expected hit to Swindon’s economy by looking at the difference in economic activity if key worker pay settlements go ahead in full, compared with the decline in economic activity if the chancellor implements the planned pay cuts.

The TUC argues that cutting key worker pay weakens wage growth for other workers too – especially those in jobs that directly depend on consumer spending.

TUC regional secretary Nigel Costley said: "“When a key worker spends their wages, it goes straight into the local economy, and comes back into other people’s pay packets.

“From shop staff, factory workers, delivery drivers, care workers, childminders, hospitality workers – right across our economy, we are all connected.

“If the chancellor is serious about getting the country back on its feet, and levelling up our communities, he needs to significantly improve the pay and conditions of all our key workers. Not cut in a time when we need it most.”