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The big ideas of 2016: return of the pay rise

Wages are improving, but from a low starting point

By Jay Elwes   January 2016

After a prolonged period of stagnation, pay in Britain is on the rise. The Office for National Statistics (ONS) reported in November that wages in Britain had increased by 3 per cent from the year before. It was a welcome announcement. Earnings in Britain have been declining for 30 years. Now they are on the rise, and are projected to rise faster than inflation.

For the past three decades, profits as a share of the economy have been growing…

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