Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

Chancellor George Osborne delivers his last budget before the General Election

Read more...

Tax planning for 5 April 2015

Read more...

Budget IR35 guidance could signal tougher stance

Read more...

Updated UK and Liechtenstein Tax Deal 15/06/12

Read more...

VAT and Road Fuel Scale Charges (RFSCS). 30/04/12

Read more...

 Contact Us

 
News Items
 
Tax Tips
 
Brilliant with numbers
Great with people
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals
 
 
Helping Your Business is Our Business

Call us now on 023 8083 6900 ABDS Home

News - 18 August 2014

Wages Fall For First Time since 2009

 New figures from The Office for National Statistics (ONS) show that weekly earnings, including bonuses, fell by a yearly 0.2% over the three months April to June. When the effects of bonus payments were stripped out, pay rises remained weak and still well below the 1.9% rate of CPI inflation.

 
The change marks the first time wage growth has been negative since the recession of 2009.
 
Commenting on the negative earnings figure, the ONS said it continued to reflect a cut in income tax in April 2013, which prompted many firms to delay bonus payments.
 
Tonmoy Kumar, Manager of the Accounts Department of ABDS comments:
“In its quarterly inflation report, the Bank of England halved its forecast for wage growth in 2014, from 2.5% to a below-inflation 1.25%. The Bank often cited weak wage growth as a reason for keeping interest rates at their historic low of 0.5%.”
 
Secretary of State for Work and Pensions Iain Duncan Smith, speaking to Sky News, blamed the fall in wage growth on bonuses in the financial sector and pointed to wage rises of over 1% in sectors such as manufacturing and retail.
 
The ONS also published data on the unemployment rate over the same period. It fell as expected to 6.4%, down from 6.5% a year earlier.
 
Between April and June, there were 30.6 million people in work, 167,000 more than for January to March and 820,000 more than a year earlier.
 
There were 2.08 million unemployed people, 132,000 fewer than for January to March 2014 and 437,000 fewer than a year earlier.
 
If you need any help and advice with your PAYE or general Bookkeeping, or looking to outsource your Accounting Department, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your business matters.
 
ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900 E-mail: abds@netaccountants.net
 
Brilliant with numbers  
Great with people  
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals
 
Helping Your Business is Our Business

« Back to News