Published On: Sat, May 11th, 2024
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Huge boost to UK economy as expert predicts massive pay rises for Brits | Personal Finance | Finance


The UK economy returning to growth could mean huge pay increases for hard-working Britons, an expert has predicted.

In a major boost to post-Brexit Britain, the latest figures showed for the first three months of the year, with the UK recovering from a drop in GDP for the previous two quarters.

Adeel Tufail, senior lecturer at The University of Law Business School, said this could lead to more jobs and a boost for take-home pay.

He told : “A growing economy typically creates more jobs, leading to lower unemployment rates and increase in income (pay).

“This means more opportunities for individuals to find employment or secure better-paying jobs ultimately boosting household income.”

Chris Andersen, insolvency practioner at CompanyDebt, also said pay increases could be on the way for workers.

He commented: “I know unions are pressing hard for catch-up pay rises but many businesses, especially in the public sector, are resisting due to budget constraints.

“I believe more widespread pay rises will be a gradual process after the financial pain of the last two years.”

But Mr Andersen also warned that achieving sustained growth is still “challenging” given current pressures.

The expert said: “There’s a little doubt headwinds remain with still-high inflation, rising interest rates, and the ongoing cost-of-living crisis squeezing household finances.

“I imagine the UK will probably avoid slipping back into a technical recession barring further economic shocks.”

Mr Andersen said the biggest issue for the economy is the current political uncertainty, with the General Election coming up this year.

He added: “I am also concerned about weak business investment and exports, and potential labour shortages that persist post Brexit. Above all, we need a credible long-term plan to boost productivity and competitiveness.”

He encouraged families to take action to make sure their finances are in good order. He explained: “My advice is for families to get as financially literate as they can, and particularly to avoid expensive debts like credit cards and payday loans if possible.

“Take advice if you feel you’re really struggling and never ignore bills or letters from creditors.”

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