£37 bi££ion to Serco means that shareholders get greater dividends, they invest that dividend and demand growth. That growth can really only be achieved by more exploitation of the environment and the workforce.
£20 UC to the 34,000 families of Bolton means that there will be less likelihood of those families being driven into poverty and dependency on charity. They will spend that money in the local community creating employment which in turn generates more spending.
If we apply the principle of local multiplier then for every £1 introduced into the local economy a re-spend of between £1.80 and £2.20 is generated, and hence if we remove £1 of income then the effect is to shrink the economy by between £1.80 and £2.20.
If 34,000 Bolton families have their income reduced by £20 per week that equates to £680,000 each and every week or a staggering £35,360,000 each and every year henceforth.
If we then apply the Local Multiplier principle that the £35m would be expected to generate between £63m and £77m the consequences are staggering for our local economy
There is also the double impact for Bolton generated by the £35m of council cuts.
The plight of those Bolton families in receipt of £20 pw uplift.
For those unable to work
The Consumer Prices Index (CPI) rose by 3.2% in the 12 months to August 2021, up from 2.0% in July: the increase of 1.2 percentage points is the largest ever recorded increase in the CPI National Statistic 12-month inflation rate series, which began in January 1997
Gas prices set to raise consumer costs up by over £100 a year
For those in work (in addition to the above)
An increase of NI from 12% to 13.25%
An end to furlough is likely to increase unemployment.
Bolton TUC 