The clamour against regional pay received renewed vigour yesterday as 25 Liberal Democrat backbenchers endorsed a paper calling for the government to scrap any plans to link public sector pay to private sector earnings across the UK. The paper prepared in the office of John Pugh MP, analyses the evidence submitted to the Treasury and Office of Manpower Economics and concludes that there is no economic case for introducing regional pay.
The government has considered the introduction of regional pay in light of concerns that public sector pay premiums across the UK are ‘crowding-out’ the private sector. However statistics show that the private sector is not struggling to recruit staff, as vacancies in the public sector go unfilled for longer and a survey of business leaders shows that the majority have not struggled to compete with public sector wages.





Because it is an absurd idea may well be your answer to that question even before you’ve reached the end of it. But bear with me a moment.


The Institute of Fiscal Studies has published a detailed paper on how the proposals of the Dilnot Commission on care and support for the elderly can be funded:
