Most UK staff face pay freeze or cut
Over half of companies across the UK plan to freeze or cut their employees' pay in 2011, according to a new survey.
The British Chambers of Commerce (BCC) said that while 45% of firms polled said they would give their staff a pay rise, 49% said they would freeze salaries, while 6% said they planned to reduce wages.
A BCC spokesman said the response, drawn from a survey of 450 businesses, showed companies were taking a "pragmatic approach to pay settlements in a tough environment".
Firms taking part were also asked about the impact of government spending cuts on their businesses.
Almost 40% of companies said the cuts would have an impact on their profitability, while just 13% expected to lay off workers as a result.
Just over a quarter of companies did not see the cuts as detrimental to their business.