Tag Archives: regional pay

Opinion: Regional Pay – bad economics, appalling politics

Looking back at Eluned Parrott’s article Lib Dems should say no to regional pay, what has surprised me is some of the comments that this reasoned article has generated.

Perhaps the first thing to challenge is the myth that public sector pay is totally rigid, whereas private pay-setting is always flexible and highly localised. It simply isn’t as simple as that.

The reality is that extensive national patterns of pay exist in the private sector, from large companies down to even medium-sized firms. At the same time considerable flexibility does already exist in the public sector, for example whilst there are national …

Posted in Conference and Op-eds | Also tagged | 6 Comments

Cable: no to regional pay; Clegg: yes to taxes on wealth; Alexander: tougher tax rules

News snippets from today:

Speaking on the Andrew Marr Show this morning, the Liberal Democrat leader ruled out the possibility of the Government filling the gap in public finances through cuts to the welfare budget – something reportedly being mooted on the Conservative benches.

He said the Government would “start at the top and work down”, and was optimistic about his chances of persuading his Conservative colleagues to agree to a so-called ‘wealth tax’.

 

Cable said that introducing regional pay was “completely unacceptable” and “terrible economics”. He said that although the Lib Dems were prepared to contemplate a measure of public sector pay

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Eluned Parrott AM writes… Lib Dems should say no to regional pay

At our Autumn Conference, members will be offered a chance to influence the party’s policy on regional and local pay. The Pay Review Body has been asked by George Osborne to look into the possibility of paying public sector workers differing amounts based on where they live. As Liberal Democrats, we must ensure that this policy does not go any further. This is why the Welsh Liberal Democrats, in partnership with the South East Cornwall Liberal Democrats, have tabled a motion designed to send the strongest possible signal that the party does not support any extension of regional or local …

Posted in Op-eds | Also tagged and | 40 Comments

Opinion: No economic case for regional pay

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.

Posted in Op-eds | Also tagged , and | 31 Comments

Local pay for the public sector: a row the Lib Dems and the Coalition will want to dodge?

The Huffington Post published an excellent dissection of the twists and turns the debate on local pay for public sector workers (sometimes called regional pay) is taking within the Lib Dems:

Letters written by the Lib Dem Chief Secretary to the Treasury Danny Alexander the number two minister at the Treasury appeared wildly enthusiastic about civil servants being paid different amounts depending on where they work as recently as the start of this year.

But subsequent letters show Alexander softening his stance, suggesting he’s come under pressure from fellow Lib Dems over the proposals, confirmed by George Osborne in the

Posted in Op-eds | Also tagged , , , and | 30 Comments

Peter Black AM writes: Welsh Liberal Democrats say no to regional pay

The Welsh Liberal Democrats believe that regional pay would further entrench Wales as a low-pay economy, both in the public and private sectors. More to the point it would lead to men and women doing the same job at different ends of the country, but receiving different rates of pay. I believe in the principle of an individual being paid a rate for a job, not in a multi-tier system which sees wages set on a postcode-by-postcode basis which will ultimately see the rich areas of south-east England become richer at the expense of the rest of the UK and …

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Time for the Lib Dems to blow the final whistle on national wage settlements

It’s over 50 years since the campaign by Jimmy Hill, then chairman of the Professional Footballers’ Association, successfully scrapped the maximum wage which operated throughout the football league until 1961. Some probably lament the commercialisation of the game which it set in motion. But the idea that individuals should have a ceiling placed on their wage-earning potential by the authorities seems quaintly absurd today.

Except in the public sector. If you’re paid by the government — if, for example, you work in schools, colleges and universities, or the civil service and local government — then your wages are defined by national pay rates determined by Whitehall and trade union negotiations. It doesn’t matter which part of the country you work, you operate within that centrally-set national pay framework. It is as quaint and as absurd as the wage rules of football were half a century ago.

Posted in Op-eds | Also tagged , , , , and | 97 Comments
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Recent Comments

  • User AvatarPramod Subbaraman 4th Jul - 7:06am
    Ah! Chris Cory, well observed. We are brilliant at talking the talk. As for walking the walk, that’s another story. Don’t forget that Sam came...
  • User AvatarCatherine Jane Crosland 4th Jul - 5:59am
    It might be a good idea if the leadership hustings could include sessions in which each candidate was interviewed individually by Andrew Neil, Cathy Newman...
  • User AvatarTom Harney 4th Jul - 5:23am
    The words right and left wing were invented by people. Like any words they have the meanings that people give to them. If we want...
  • User AvatarDavid Evershed 4th Jul - 2:29am
    Some define their left wingness by how much they hate Conservative policies rather than any positive criteria.
  • User AvatarMike Read 4th Jul - 12:23am
    Good post, thank you. As someone who voted in every leadership contest the party has ever had I am very undecided this time! In the...
  • User AvatarLorenzo Cherin 4th Jul - 12:04am
    The coalition is only the disaster it is for some because it was then a one off, as far as some think. This is skewed....