Vince Cable Calls For Freeze On Public Sector Pay At Liberal Democrat Conference

[interestrateripoff]

http://www.guardian.co.uk/politics/2009/se...ibdemconference

Public spending bill should be cut by £2.4bn a year, the Lib Dem treasury spokesman says

Britain's public spending bill should be cut by £2.4bn a year by freezing the entire budget for millions of public-sector workers, the Liberal Democrat Treasury spokesman, Vince Cable, will declare tomorrow.

In an attempt to cast the Lib Dems as the party prepared to take the boldest action to repair the public finances, Cable will warn that only tough and unpopular decisions can work.

Cable has been widely praised across the political spectrum for having forecast that Britain was heading to a debt-fuelled recession. He will say that Britain's £158bn public sector pay bill, 22% of all government spending, should be frozen. His plan, which came as the row between Tories and Labour over tax and spending intensified, is designed to save £2.4bn a year on prices for 2008-09.

In his speech to the Liberal Democrat conference in Bournemouth, Cable will say: "We must stop civil service bonuses and the culture of massively inflated salaries. A freeze in the total pay bill is better than cuts in services."

Cable will add that the next government will have to be prepared to be deeply unpopular. "I don't pretend that the task will be easy or popular. But I have a few ideas as to how we would start."

The call by Cable, who last week outlined plans for £14bn in public spending cuts, is designed to show that the Lib Dems are prepared to outflank both Labour and the Tories. Nick Clegg, the Lib Dem leader, called for "bold, serious, difficult decisions" as he confirmed that the party would delay its flagship policy to scrap university tuition fees.

Charles Kennedy, the former Lib Dem leader, voiced unease among grassroots Lib Dems over the watering down of such a totemic policy when he said that it had "served us well". But Cable will make it clear he is prepared to face down critics by outlining plans to freeze the salaries of public sector workers, many employed by Lib Dem councils. Freezing the overall budget for public sector pay would lead to particular savings in the NHS; 70% of the health budget goes on pay.

But Cable will say that his proposal would not lead to an across the board pay cut for all public sector workers. The Lib Dems would hope to protect, and even increase, salaries for lower-paid public sector workers by cutting the salaries of highly paid managers and by scrapping managerial jobs. The plan would only apply to the next round of pay deals; the party would honour existing deals.

Cable will say that the Lib Dems' plan contrasts with those floated by David Cameron, who has failed, according to the Lib Dems, to spell out his plans for cuts in any detail. "No one does political cynicism better than the Tories. They pose as tough guys cutting spending sooner and deeper than anyone else," Cable will say. Lib Dem research has found that the Tories have racked up spending pledges of £53bn while pledging to make cuts.

Hopefully someone will have the guts to do this, although top management need there salaries cut as Bloo Loo has said by at 50% over certain level of income. Bloo picked anything over £50k gets a 50% cut.

Edited September 20, 2009 by interestrateripoff

[lowrentyieldmakessense(honest!)]

dream on

they cant cut fast enough - will have a shortfall of 220 - 230bn this year i reckon

start emptying your own bins

[Guest happy?]

http://www.guardian.co.uk/politics/2009/se...ibdemconference

Hopefully someone will have the guts to do this, although top management need there salaries as Bloo Loo has said by at 50% over certain level of income. Bloo picked anything over £50k gets a 50% cut.

Vince has to date only identified savings of £14 billion - still some way to go.

[Kurt Barlow]

http://www.guardian.co.uk/politics/2009/se...ibdemconference

Hopefully someone will have the guts to do this, although top management need there salaries cut as Bloo Loo has said by at 50% over certain level of income. Bloo picked anything over £50k gets a 50% cut.

All piss and wind from VC.

At a local level Lib Dems will continue to pay their CEO's inexcess of £100K. Good example being Cambridge who appointed a new CEO in May on £120K per annum. This was after paying off the previous useless nugget a 6 figure sum.

Any pay cuts will be restricted to middle and lower ranking staff such is the equity of these organisations.

[Fudge]

If it aint hurting working people they need to tighten their belts so as to cut their cloth accordingly.

[loginandtonic]

cable applauds qe and zirp, he's no better than any of the others, total false prophet for hpc misguided fans of his, i wouldnt give him time of day

[1929crash]

Any pay cuts will be restricted to middle and lower ranking staff such is the equity of these organisations.

+1

[shindigger]

Less than the cost of bailing out Northern Crock (£19 billion), Lloyds and B&B cost more than £47 billion ....

Too much ******ing perspective.

[tinker]

St. Vince got a bit of a rough ride from Andrew Neil on Straight Talk, currently airing at various times on BBC News Channel and the The Parliament Channel.

I think for many, whilst a likeable figure, has been a bit hit and miss in his analysis.

All the talk of cut, which demonstrate just how bad things are, are really going to spook the natives.

If you are listening Vince, our biggest problem is that the cost of living here is too high, much of it down to over-inflated housing costs, this make it harder for the nation to compete in a global economy. And compete we must to generate the revenue (real products and services) to pay down the debt.

[The Masked Tulip]

Lib Dems are not the brightest lights in the fairy light chain - how to alienate voters part one!

[Cogs]

All piss and wind from VC.

At a local level Lib Dems will continue to pay their CEO's inexcess of £100K. Good example being Cambridge who appointed a new CEO in May on £120K per annum. This was after paying off the previous useless nugget a 6 figure sum.

Any pay cuts will be restricted to middle and lower ranking staff such is the equity of these organisations.

Yes, well spotted Kurt. At local level the 'culture of inflated wages' is largely the fault of Tory/Lib councils who seem to think their primary job is the successful poaching of senior staff from their "competitors". Not that at national level they will own up to this but its really been the main story of the last decade in local politics.

Edited September 20, 2009 by Cogs

[LetsGetReadyToTumble]

http://www.guardian.co.uk/politics/2009/se...ibdemconference

Hopefully someone will have the guts to do this, although top management need there salaries cut as Bloo Loo has said by at 50% over certain level of income. Bloo picked anything over £50k gets a 50% cut.

Vince Cable is an idiot.

I watched straight talk this week with our Vince. He's made more U turns than Armitage Shanks. He also lost his cool on QT, spouting on about 'Tory toffs'. I didn't go to anything like as posh as Eton, but I don't knock those who aspire to improve themselves. I'm also not jealous of the wealthy. I don't understand why people like Vince need to get hot and bothered about Eton.

Don't forget Vince used to be a Labour MP, so that shows me which side his toast is buttered.

Considering his background, he should be a good economist, but economists need to be logical animals, unlike Vince who is a political animal.

Edit for speeling

Edited September 21, 2009 by LetsGetReadyToTumble

[ingermany]

dream on

they cant cut fast enough - will have a shortfall of 220 - 230bn this year i reckon

start emptying your own bins

Perhaps? It was terrifying to hear Ed Balls on Sunday calling for a 2 billion education cut. How bad must the situation be for him to do that? Is he saying this in an attempt influence the money markets? To forestall an expected collapse in Sterling? Certainly not trying to win votes or protect his department. It makes me think he knows something really bad is coming.

[Second Time Around]

Perhaps? It was terrifying to hear Ed Balls on Sunday calling for a 2 billion education cut. How bad must the situation be for him to do that? Is he saying this in an attempt influence the money markets? To forestall an expected collapse in Sterling? Certainly not trying to win votes or protect his department. It makes me think he knows something really bad is coming.

If I was a Labour "Crony" would I prefer (based on my likely pay-off package) to be sacked by Labour now or by the Conservatives later?

Or am I feeling a bit cynical today?

[Bloo Loo]

I think 50% off ALL public sector salaries above 25K...for the record IRRO.

[ingermany]

Strange, but I wasn't scared until yesterday. It's like seeing the ship's 1st mate running for the lifeboats. No wonder they left til after the TUC conference. Does this mean the bailiffs are now at the door?

Seems like the 3 main parties are going to adopt a "national unity" approach on spending cuts. Perhaps the crisis is so serious that the election campaign will be effectively suspended. It's bizarre that Ed Balls would start the cuts auction by throwing everything on the table in the opening bid. I can almost hear millions of wallets belonging to public sector workers being zipped shut.

[Bloo Loo]

Strange, but I wasn't scared until yesterday. It's like seeing the ship's 1st mate running for the lifeboats. No wonder they left til after the TUC conference. Does this mean the bailiffs are now at the door?

Seems like the 3 main parties are going to adopt a "national unity" approach on spending cuts. Perhaps the crisis is so serious that the election campaign will be effectively suspended. It's bizarre that Ed Balls would start the cuts auction by throwing everything on the table in the opening bid. I can almost hear millions of wallets belonging to public sector workers being zipped shut.

As predicted, itll get worse after the holidays....It hasnt actually, what has happened is the stuff brushed under the carpet is getting smelly and they are allowing it to be talked about....dealing with it? nah, thats for the next incumbents.

[THE BALD MAN]

As predicted, itll get worse after the holidays....It hasnt actually, what has happened is the stuff brushed under the carpet is getting smelly and they are allowing it to be talked about....dealing with it? nah, thats for the next incumbents.

Scorched earth from Labour

[Mr Prudence]

Strange, but I wasn't scared until yesterday. It's like seeing the ship's 1st mate running for the lifeboats. No wonder they left til after the TUC conference. Does this mean the bailiffs are now at the door?

Seems like the 3 main parties are going to adopt a "national unity" approach on spending cuts. Perhaps the crisis is so serious that the election campaign will be effectively suspended. It's bizarre that Ed Balls would start the cuts auction by throwing everything on the table in the opening bid. I can almost hear millions of wallets belonging to public sector workers being zipped shut.

In 5 days we have moved from GB not mentioning cuts to a half wit minister coming on the telly and almost as an aside offering up 2 billion of cuts.

That tells you all you need to know about the quality of leadership we have now.

I got the impression Balls was making it up as he went along, back of a fag packet doesn't come into it.

[abharrisson]

http://www.guardian.co.uk/politics/2009/se...ibdemconference

Hopefully someone will have the guts to do this, although top management need there salaries cut as Bloo Loo has said by at 50% over certain level of income. Bloo picked anything over £50k gets a 50% cut.

Trouble is you need some element of political knowledge to actually gain office before embarking on your plans. Saying all public servants should have a pay freze is bound to piss off so many en masse that gaining office will now be an impossibility... thats why rightly or wrongly the conservatives and labour stay away from sweeping specifics...... they should all make huge cuts.... the one who actually gets the keys to the cuts office will be the one who convince the general public that they will do the job best AND anyone working for the public sector that they will do least damage to their gravy train.

[lurker07]

what they need is a giant whiteboard with a plus and minus column to show voters that WE HAVE NO MORE FECKING MONEY!!!!!!!!!!!

Perhaps then people might be inclined to vote properly.

Or perhaps not.

[Wires 74]

Don't forget Vince used to be a Labour MP,

When exactly ?

[Scunnered]

I think 50% off ALL public sector salaries above 25K...for the record IRRO.

Good idea. That should take your average teacher's pay well below £15,000: that'll sort the bastards out.

[Cogs]

I think 50% off ALL public sector salaries above 25K...for the record IRRO.

We know. However, it seems to me labour costs are too high across the whole economy. Its no good attacking the public sector alone, the state is a participant in the labour market like anyone else.

Fortunately there is a way we can impose your plans, its called Income Tax.

Edited September 21, 2009 by Cogs

[dr ray]

We know. However, it seems to me labour costs are too high across the whole economy. Its no good attacking the public sector alone, the state is a participant in the labour market like anyone else.

Fortunately there is a way we can impose your plans, its called Income Tax.

Income tax increases labour costs. People would work for less if income tax were lower.

I earn considerably more than 25K in the public sector. As it is, I am thinking of cutting my hours because I will be in the "supertax" bracket next year.

My basic pay has risen by 1% or less for 4 or 5 years while private sector pay has soared.

I earn my wage by working very long hours (EWTD doesnt apply). If my basic pay is cut I will simply cut my hours by the equivalent amount and see the same patients privately or work in another NHS hospital as a locum.

I'm afraid we live in a global market and the government has to pay a competative rate if it wants to attract and retain the best staff (well this argument works for the private sector to justify outrageous wages and bonuses, so I thought I'd give it a try)