Member Article

Wage increases planned across half of North East businesses

Just over half of North East businesses are planning to make wage increases in 2014, a report from Barclays bank suggests.

25% of respondents said wage pressure from employees was a concern and 20% said it was a major concern.

Tony Walsh, co-head of Corporate Banking UK & Ireland, Barclays, said: “After an extended period of wage freezes, which have been tough for employees, it’s good to see that so many North East employers will be increasing wages in the coming year.

“This can only have a positive impact on employee morale. However, it will increase inflationary pressure as the year progresses.”

Nearly 40% of respondents suggested unemployment would fall sufficiently to trigger the Bank of England’s proposed interest rate rise in 2016 or later, while 25% thought it would be 2015.

Tony added: “Whilst no one knows when interest rates will rise, North East businesses should not be complacent. It would be prudent for firms to ensure they have sufficient cash flow to absorb the increase when it comes.”

This was posted in Bdaily's Members' News section by Tom Keighley .