By Aysu Bicer
LONDON (AA) - The British economy has missed out on £400 billion (nearly $500 billion) of growth since 2010, when the Conservatives took office, according to a report by the Trades Union Congress (TUC) on Thursday.
"The wealth of the top decile has grown by 70% since 2010, while workers have endured the worse pay crisis for 200 years," it said.
According to TUC, the Tories have created an economic "doom loop," by making public sector pay cuts, departmental budget cuts, and refusal to consider wealth taxes.
"Wage growth is the fuel in the tank that drives the economy. Businesses need customers with money to spend. That’s the only way our economy is going to grow sustainably," TUC General Secretary Paul Nowak said in a statement.
"But since 2010, Conservative policies have held down wages year after year. And ministers have given more and more in tax breaks to banks, corporations, and high earners. The rich got richer, but living standards for everyone else fell."
Stating that the government needs a fresh approach to its economy policies, he said this will free the country from "doom loop of pay squeezes, low spending, and low growth."
- Britain, only G-7 economy forecast to decline in 2023
While most advanced countries expected to see economic growth in 2023, the British economy is forecast to see a year of contraction, compared to previous predictions of growth.
In the latest update of its economic forecasts, the International Monetary Fund said Britain is the only G-7 economy forecast to decline in 2023, as higher energy prices and tighter fiscal and monetary policies impact growth.
Its economy is expected to shrink 0.6% in 2023, down 0.9 percentage points from October.
The Bank of England (BoE) on Thursday raised its policy interest rate by 50 basis points to 4%, marking the 10th consecutive hike since December 2021.
The interest rate was at 0.1% in November 2021.
In a statement, the bank said global inflation rates are still high despite decreasing energy prices and an easing of global supply chain issues.
The inflation figure is at 10.5%, the highest level for 40 years.
According to BoE, the country is set to enter recession this year but it will be shorter and less severe than previously projected.