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Realistbear

" The Great Pay Freeze Of 2011 "

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http://uk.finance.yahoo.com/news/Half-businesses-freeze-pay-tele-3066068996.html?x=0

Half of businesses to freeze pay in 2011
Ben Harrington, 11:00, Monday 27 December 2010
More than half of businesses will freeze or reduce pay for their staff next year amid worries about the Government's spending cuts, according to the British Chambers of Commerce (BCC).
Around 49pc of businesses surveyed by the industry group said they are likely to freeze pay, while 6pc plan to cut wages. Only two in five out of the 345 companies surveyed said they were likely to pay bonuses in 2011.
Six (news) in 10 of the companies said they have already cut or frozen wages at some point during the past three years.
"Firms face a number of pressures moving into 2011," said Dr Adam Marshall, director of policy at the BCC. "They have to contend with government spending cuts, increased regulation, and higher taxes thanks to increases in VAT and National Insurance contributions."

The party is O-ver. Pay freezes and inflation together with higher IR will not make a pretty picture going into 2011. I am wanting to buy in 2011 but we may well see a seismic shift in house prices unless a White Swan arrives on the scene.

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http://uk.finance.yahoo.com/news/Half-businesses-freeze-pay-tele-3066068996.html?x=0

Half of businesses to freeze pay in 2011
Ben Harrington, 11:00, Monday 27 December 2010
More than half of businesses will freeze or reduce pay for their staff next year amid worries about the Government's spending cuts, according to the British Chambers of Commerce (BCC).
Around 49pc of businesses surveyed by the industry group said they are likely to freeze pay, while 6pc plan to cut wages. Only two in five out of the 345 companies surveyed said they were likely to pay bonuses in 2011.
Six (news) in 10 of the companies said they have already cut or frozen wages at some point during the past three years.
"Firms face a number of pressures moving into 2011," said Dr Adam Marshall, director of policy at the BCC. "They have to contend with government spending cuts, increased regulation, and higher taxes thanks to increases in VAT and National Insurance contributions."

The party is O-ver. Pay freezes and inflation together with higher IR will not make a pretty picture going into 2011. I am wanting to buy in 2011 but we may well see a seismic shift in house prices unless a White Swan arrives on the scene.

A lot of low payed workers will be better off on benefits if they cut pay anymore for some, They have to make working more beneficial than being on benefits. Will they cut benefits?

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A lot of low payed workers will be better off on benefits if they cut pay anymore for some, They have to make working more beneficial than being on benefits. Will they cut benefits?

Apparently so.

Houses need to drop by another 40% or so to become affordable for people on normal earnings. At current pricing, 5 X average wages, the market will collapse. Pay freezes, redundancy, inflation and possibly higher IR will be toxic to house prices this year.

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A lot of low payed workers will be better off on benefits if they cut pay anymore for some, They have to make working more beneficial than being on benefits. Will they cut benefits?

Universal Credit will be along in 2013, all benefits rolled into one if IDS can get away with it.

As a council tenant I'm interested to see what will happen as rents are going to be pushed by 6 or 7% a year (70% of tenants are on Housing Benefit...they don't care!) but they'll suddenly start caring if they have to pay 100 or 120 per week from their Universal Credit!

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Did I kill another thread?

Probably. Inflation is high but as we have seen it's external factors (imported goods prices increasing, increasing price of oil/gas) plus government increases in taxes which are keeping it high. There's so much slack in the economy at the moment this'll keep wages down and domestic prices down hence why the MPC aren't too worried about it at the mo. Though they might get worried about stagflation eventually (once the govt. debts have been inflated away first though).

This will have an effect on people's house buying potential though, as the essentials become an increasing percentage of take home pay, this leaves less for mortgage payments and the like.

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Yet banks are still to pay their top people billions of pounds of course, so not bad news on income for everybody <_<

And with the prospect of more 'free money' to come, plenty of scope for investors' cash to go into commodities and keep the cost of living rising for the average person.

Just when will regular people twig how badly they are being reamed I wonder?

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Pay freezes, redundancy, inflation and possibly higher IR will be toxic to house prices this year.

Don't forget NI is also going up AGAIN !!!

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Eh ni aswell? WTF? Had no idea. My 1.26% increase is even more of a pissake now.

start getting used to it, those that earn are about to be squeezed mercilessly to support those that dont and our debt.

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This may well be the first year of the recession / depression proper. Although perceived wisdom would say it has been ongoing for the past couple of years - I think we have seen little of any recessionary / depressionary factors to date.

Those that think we are getting out of recession when in reality we are most surely entering the 'job loss' phase will be caught unprepared for what will prove to be a 'game changing' economic shift.

I fear even those of us (including myself) who understand the nature of this planned demolition of our economy and currency will be totally taken aback at the full extent of what is to come.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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