Employees likely to be left disappointed this year
Employees should not expect a bumper pay rise this year, despite an anticipated increase in profits for UK businesses of 4.1%, a new survey has revealed
A survey from the Institute of Chartered Accountants in England and Wales/Alliance & Leicester Commercial Bank showed that profits should jump from last year’s figure of 2.7%.
However, not much of this will be passed on to staff.
Wages are only expected to grow at a rate of 2.7%, in line with last year, claims the study.
‘Although profit growth predictions are higher than in the last survey, the expectation of similar wage increases could prove unrealistic,’ said Eric Anstee, chief executive of the institute.
However, he said the sound state of the economy would prove good news for the chancellor who needs strong growth to raise taxes for public expenditure.
Over 1,000 accountants and chartered accountants took part in the survey.