The attack on tax credits is a gamble. Without a strong recovery, it will fail
by Guardian Staff from on (#CNGR)
Wages are rising again: but families who turned to the Tories in May will not forgive a government that rewards their votes with a net fall in income
Next year, average wage rises will double to 4% and the economy will be booming. Exports will flourish and private investment will return to pre-crisis levels. Unconfined joy will spread from the south-east northwards, and west to the Cornish constituencies captured by the Tories from the Liberal Democrats.
The optimistic forecasts do not stop there. Unemployment will continue to fall, productivity will rise, and the Bank of England, concerned that the UK's runaway success is about to generate the return of inflation, will start to put up interest rates at a gentle pace.
Middle income families are spending only a proportion of their gains from a 2% wage rise. They are clearly nervous
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