The Institute for Public Policy Research found two in five people have had a real-terms pay cut since 2009
Boris Johnson should take a leaf out of US President Joe Biden ’s book and invest £47 billion across the UK to boost the economy, a new report says.
The Institute for Public Policy Research has found 5.5 million workers are in insecure work with 2.5 million people working in positions that do not match their skill level.
And two in five people have had a real-terms pay cut since 2009 while the wealthiest have prospered, the think tank warned.
The organisation said investment would boost the economy and force companies to compete for workers which would increase people’s wage packets.
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The think tank recommends more UK-wide “moonshot” projects, such as that to develop the coronavirus vaccine, and a stimulus for full employment where ministers should “boost it like Biden” by increasing annual public investment to £47 billion.
Carys Roberts, IPPR executive director, said: “The UK suffers from concentrations and imbalances of power that are both a cause of some of our economy’s problems, and a barrier to solving them.
“The pandemic must mark the end of this era of growing inequality and the beginning of a new one, in which sharing opportunity across people and places is a core objective of economic and social policy.”
Mr Biden signed off a 1.9 trillion dollar (£1.4 trillion) package to help America recover from the pandemic.
George Dibb, head of the IPPR Centre for Economic Justice, said: “During the pandemic we clapped for key workers, but our report shows that even before Covid-19 two in five of those in work had seen a fall in pay. The UK must target full employment, where instead of workers competing for jobs, employers fight to attract workers.
“Most people do not want to see the economy go back to how it was working before the pandemic. There is a need for change, and our plan to hard-wire the economy for justice will ensure that the benefits of the recovery are shared with everyone.”
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It comes after Mr Johnson said the UK and US are “the closest of partners” following a meeting with President Biden at the White House.
In a tweet including a photo of the pair, Mr Johnson said: “The UK and US are staunch allies and the closest of partners.
“We will stand side-by-side to protect our people and defend our values around the world.”