Labour and Tories fight it out over public sector pay
By Ian Dunt
David Cameron has promised not to adopt a blanket freeze of public sector pay, while the chancellor refused to rule one out.
The Tory leader admitted pay settlements would be much “tighter” as public finances were rebuilt following the financial crisis, however.
But a Conservative government would stick to the existing public pay review bodies as a means of establishing pay.
Asked about a freeze on the Today programme this morning, Mr Cameron said: “I don’t think that is the way we do pay in this country.
“The way we do pay in this country in the public sector, rightly, is we have independent pay review bodies.
“Those bodies do have to look at what is happening in the private sector, rightly, where pay levels are very restrained because those pay review bodies are looking at how do we recruit, retain and motivate public sector staff,” he continued.
“So, yes, you are obviously going to see much tighter public sector pay settlements.”
The comments were a deliberate counterweight to those from Alistair Darling over the weekend, who voiced concerns about inflation and public sector pay compared to private sector pay.
“Public sector pay has got to reflect prevailing conditions and in particular inflation has come way down,” he told Sky News.
Unions reacted angrily to the comments, with Brian Strutton of the GMB warning a freeze could trigger strike action.
Today Downing Street insisted there were no plans to re-open any of the multi-year pay deals, despite standing behind Mr Darling’s comments.
“The prime minister shares the view that public sector pay has got to reflect prevailing conditions, in particular that inflation has gone a long way down,” Gordon Brown’s spokesman said.
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