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Future of British Business

UK Local Authorities Say They Can’t Afford Living-Wage Increase

  • Councils struggle with staff pay demands after inflation jump
  • Warning adds to strains on the UK Treasury’s finances

Britain’s local authorities say they can’t afford to pay a mandated increase in the legal minimum wage over the next year without a £400 million cash injection from the national government. 

The Local Government Association said jobs and quality of services maintained by councils will deteriorate as officials struggle to pay higher wages. That’s a threat to functions ranging from collecting rubbish bins and filling potholes to taking care of the elderly and those who are homeless.