Showing posts with label Policy Exchange. Show all posts
Showing posts with label Policy Exchange. Show all posts

Monday, 9 May 2011

Public Sector pay freeze until 2015: A tought message for the Coalition

The front page of the Telegraph says it all today. A good study into public sector pay has shown that despite the recession public sector pay just keeps on going as compared to private sector pay. Indeed, as private sector pay contracts the public sector has kept on motoring.

Even if you ignore the arguments for a smaller state that does less, there are clear drivers in terms of UK fiscal needs to impose a blanket ban on public sector pay rises for at least the length of this parliament. The report says 2018 to make up the balance, but it you add in the effects on inflation into no pay rises then 2015 should meet the target.

The target being EQUAL wages for average public and private sector employment in similar jobs.  This follows a good suggestion from the Policy Exchange paper that this is the right route to take. Of course, the Union bosses are not so happy about such proposals.

The query is whether the Lib Dems are going to be able to cope with these kinds of logical, but tough choices going forward. After their election defeats they may think they need to badly shore up the left wing of their party.

It is worrying for the Government that it is left in this position, most commentators seem to think the Coalition Government will continue of just fine - but if the Government is stymied from taking serious but necessary action then there is little point in it lasting.